Atari files for bankruptcy

Atari US files for Chapter 11 bankruptcy protection

Atari has filed for Chapter 11 bankruptcy in the United States in an attempt to break off from its French parent company

One of the oldest names in videogames, Atari, has filed for bankruptcy protection. The maker of iconic classic games such as Asteroids and Pong has filed petitions for Chapter 11 reorganisation in US Bankruptcy Court in New York, in an attempt to break free from Atari S.A., its French parent company.

According to a story published on the BBC's website, Atari, along with Atari Interactive Inc, Humongous Inc and California Holdings are trying to secure funding to develop mobile and digital games, and so wish to separate from Atari's debt-laden parent company. In a statement the companies said:

"With this move the US based Atari operations seek to separate from the structural financial encumbrances of their French parent holding company, Atari."

"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 statement said.

Source: BBC