Atari Files For Chapter 11 To Separate From French Parent
Iconic Brand Seeks to Restructure and Secure Independent Capital for Future
NEW YORK, Jan. 21, 2013
NEW YORK, Jan. 21, 2013 /PRNewswire/ -- Today Atari Inc., Atari Interactive
Inc., Humongous, Inc. and California US Holdings, Inc. (collectively, the
"Companies")filed petitions for relief under chapter 11 of the United States
Bankruptcy Code in the United States Bankruptcy Court for the Southern
District of New York.With this move, the U.S.-based Atari operations seek to
separate from the structural financial encumbrances of their French parent
holding company, Atari S.A. (formerly Infogrames S.A.) and secure independent
capital for future growth, primarily in the areas of digital and mobile games.
Within the next 90-120 days, the Companies expect to effectuate a sale of all,
or substantially all, of their assets in a "sale free and clear" under section
363 of the Bankruptcy Code or to confirm plans of reorganization that
accomplish substantially the same result. These assets include not only one of
the most widely recognized brand logos, which is familiar to 90% of Americans,
according to a recent survey, but also legendary game titles including Pong®,
Asteroids®, Centipede®, Missile Command®, Battlezone® and Tempest®. Other
recognized brands include Test Drive®, Backyard Sports® and Humongous®.
Under current management, Atari Inc. has shifted its business from traditional
retail games to digital games and licensing with an increased focus on
developing mobile games based on some of Atari's most iconic and enduring
franchises. With these moves, the company has added new revenue models,
including digital download and advertising. As a result, Atari Inc. has become
a growth engine for Atari S.A., which in turn has reported consecutive annual
profits in 2011 and 2012.
The company has recently launched a slew of chart-topping titles for iOS and
Android mobile platforms, including Atari® Greatest Hits, Outlaw™, Breakout®
and Asteroids Gunner®. The company has previously announced upcoming mobile
and tablet games based upon the popular Rollercoaster Tycoon® franchise and
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.
Peter S. Partee, Sr. and Michael P. Richman of Hunton & Williams LLP are
proposed to serve as lead counsel for the U.S. companies in their respective
Chapter 11 cases.
Atari (www.atari.com) is a multi-platform, global interactive entertainment
and licensing company. Atari owns and/or manages a portfolio of more than
200 games and franchises, including world renowned brands like Asteroids®,
Centipede®, Missile Command®, Pong®,Test Drive®, Backyard Sports®, and
Rollercoaster Tycoon®. Atari capitalizes on these powerful properties by
delivering compelling games online (i.e. browser and digital download), on
smartphones and tablets and other connected devices. The Company also develops
and distributes interactive entertainment for video game consoles from
Microsoft, Nintendo and Sony. As a licensor, Atari extends its brand and
franchises into other media, merchandising and publishing categories.
SOURCE Atari, Inc.
Contact: Melissa Zukerman, Principal Communications Group, +1-323-658-1555,
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