Atari Files for Chapter 11 Bankruptcy

This article comes from Highwaygames.com

Long time game icon, Atari - a company started by industry entrepreneur Nolan Bushnell - has just filed for Bankruptcy under Chapter 11 of the United States Bankruptcy Code. The company has held out in a tough industry since the early seventies, with the release of Pong in 1972 and the popular game Asteroids in 1979, and eventually moved over to home consoles and computer software during the 1980s.

A french company by the name of Infogrames Entertainment acquired stakes in Atari in 2000, and then later took it over in 2008, changing the group name to Atari S.A. and since failed to make a steady profit. The company now owes BlueBay Asset Management 21 million Euros and has had it's credit suspended. Although they have been approved for a US$5 million loan from a company that specializes in distressed lending called Tenor Capital.

However bittersweet this may seem, it may not be the end. Under Chapter 11 bankruptcy the debtor (in this case, Atari) remains in control of its business operations as a "debtor in possession", and the company does intend to do business as usual during this period of bankruptcy.

That's not all though. Atari US apparently intends to get free of their french parent company and are looking towards an independent future of growth and profit in the digital and mobile games industry. The going may be slow at first, but considering the longevity of the company in the games industry, with the right creative and forward-thinking minds a comeback would be very possible. In the meantime, Atari S.A. is looking to sell off some of its assets, including the company logo and games as well (approximately 200 of them).