Atari bankruptcy hearing nears
April 26, 2013
By Chris Forrester
Games maker Atari, which one enjoyed a significant position in the industry but has recently been operating under Chapter 11 protection in the US, says its position (with its French parent) is “stabilised” although business remains at a standstill. Atari is in the process of liquidating subsidiary Eden Games (which started in January). The US bankruptcy court will examine Atari’s position on April 30th.
Alden Global Capital provided a $5 million ‘Debtor in Possession’ loan to Atari to see it through the Chapter 11 process. There are various potential financial and strategic buyers looking to pick up the company’s remaining assets, and the Court will examine bids.
Atari says it has about €1.5 million in cash, which is enough to keep the business ticking over until July 25th. Atari, in a statement, says: “In order to enable Atari to repay its Credit Facility and maintain (if possible) its operations after July 25th, 2013, sales of assets in accordance with the Chapter 11 Proceedings in the US are necessary. The scope of such sales and their prices will be determined in the course of the Proceedings and under the final control of the US bankruptcy judge, as further detailed below. The outcome of the Proceedings, which will also need to be approved by the US creditors, will be of particular importance for Atari and its shareholders. The possible options for continuing operating will be assessed at this point, depending on the remaining assets, as the case may be, their potential and financing available.”