The US arm of iconic video games developer and publisher Atari has filed for chapter 11 bankruptcy, along with three of its affiliates.<\/p>\n
This is seen as a move that could have them break free from French parent company Infogrames which itself is battling with massive debts.<\/p>\n
According to a source cited by LA Times, the Atari US business leaders hope to find a buyer and take the company private. Their new business model will focus on digital and mobile platforms.<\/p>\n
Evidence suggests that the US Atari operation has been improving, having reported profits for the last two financial years. However, its complex corporate structure as an American company with a French public stock listing means it hasn’t been particularly attractive to investors.<\/p>\n
Atari had also been relying on a London financial institute, BlueBay, for US$28-million credit which was keeping the company afloat while it completed games in production – a facility which has now lapsed.<\/p>\n
As reported by LA Times, “Atari has secured US$5.25 million dollars in debtor-in-possession financing to continue operations and release games. If Chapter 11 is successfully completed, the U.S. business could reemerge with its own resources and little or no debt to BlueBay.<\/p>\n
5 retrotastic video game demakes<\/a><\/strong><\/p>\n