Posted on January 21, 2013 AT 10:24am
As of last night, Atari has officially filed for bankruptcy in a move to separate itself from French parent company Atari S.A.. Atari’s name in the gaming industry goes back to its digital inception with the advent of Pong, and the first home consoles, when it was first founded by Nolan Bushnell in 1972. The brand is recognized by over 90% of all Americans.
The filing includes the brands Atari Inc., Atari Interactive Inc., Humongous, Inc. and California US Holdings, Inc. The paperwork was filed with the US Bankruptcy Court of New York. The company expects to continue normal operations during the proceedings.
The company expects to sell its assets within the next three to four months under Bankruptcy Code Section 363. The sale includes its iconic logos and entire library of over 200 game properties from Asteroids to Pong.
Atari wishes the court to approve $5.25 million in debtor-in-possession finances from funds managed by Tenor Capital Management, a finances firm that specializes in convertible arbitrage and special situations.
Peter S. Partee, Sr. and Michael P. Richman of Hunton & Williams LLP are the current proposed lawyers to serve as lead counsel in the bankruptcy filing. [Source: VentureBeat]
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