Atari Files for Chapter 11 Bankruptcy
Atari, the legendary publisher that brought us classics like Centipede, Pong, Missile Command and more recent titles like Test Drive, has filed for Chapter 11 bankruptcy, according to the U.S. Bankruptcy Court in Southern District of New York. The company is looking to break away from its French parent company (Atari S.A., aka Infogrames) and “secure independent capital” for growth within mobile and digital games.
In order to do so, Atari will have to sell off all (or nearly all) of its assets which include those aforementioned classic games.
As of late, Atari has been focusing on iOS and Android titles including Breakout and Asteroids Gunner, Atari Greatest Hits and Outlaw, while the company had previously announced games based on Rollercoaster Tycoon.
The announcement also stated the following information about the filing:
The Chapter 11 process constitutes the most strategic option for Atari’s U.S. operations, as they look to preserve their inherent value and unlock revenue potential unrealized while under the control of Atari S.A. During this period, the company expects to conduct its normal business operations.
The U.S. companies are also seeking approval to obtain $5.25 million in debtor-in-possession financing from one or more funds managed by Tenor Capital Management, a firm specializing in convertible arbitrage and special situations. Each unit has filed a number of traditional “first-day” pleadings, which are intended to minimize any disruption of their day-to-day operations.