Atari Files For Bankruptcy Protection
Written Tuesday, January 22, 2013 By Richard WalkerView author's profile
Atari's US operation is looking to separate from its unprofitable French parent company, filing for bankruptcy protection and severing ties with Atari SA, formerly known as Infogrames. Atari Inc, together with Atari Interactive Inc, Humongous Inc. and California US Holdings Inc. are now looking to secure independent funding in order to continue developing digital and mobile games.
Atari SA has been struggling financially for a long time seeing its share price plummet by 50% in the past year, leading to this latest move by Atari US. The companies issued the following statement, saying "with this move the US based Atari operations seek to separate from the structural financial encumbrances of their French parent holding company, Atari SA".
It's hoped that Atari US can continue to create games for digital platforms like XBLA and PSN, with the 40 person operation seeking $5.25 million in funding to continue business during the bankruptcy period.
"The Chapter 11 process constitutes the most strategic option for Atari's US operations as they look to preserve their inherent value and unlock revenue potential unrealized while under the control of Atari SA," the statement added.
[Via BBC | Thanks, GreaseMonkeyGB]