You all know Atari and what they've made. But did you know they just filed Chapter 11 bankruptcy? Well, they did.
Atari says that, the move is necessary to secure investments it needs to grow in mobile and downloadable video games.
Atari U.S. has moved over to sell downloadable games and mobile games.
CEO Jim Wilson said the moves were the "best decision to protect the company and its shareholders." The auction process in U.S. bankruptcy proceedings will "maximize the proceeds" going to shareholders, he added.
Creditors include accounting firm Deloitte & Touche, and retail stores Kmart and Wal-Mart Stores, although none are owed more than $250,000. Blue Bay is not listed as one of the U.S. operations' creditors.
Atari, which turned 40 last year, was a videogame pioneer with games like "Pong" and "Centipede," but has changed ownership several times amid financial problems. In its filing with the U.S. Bankruptcy Court in the Southern District of New York, Atari said it had $1 million to $10 million in assets and $10 million to $50 million in debt. It is seeking approval for $5.25 million in debtor-in-possession financing from investment firm Tenor Capital Management.
Atari said it expects to sell its assets or confirm a restructuring plan within the next three to six months.
No comments:
Post a Comment