Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Atari Inc. Files for Chapter 11 Bankruptcy Protection
Author: Joel R. Glucksman
Date: January 24, 2013
Key Contacts
Back
Filing for Bankruptcy Protection
The U.S. arm of video game maker Atari filed for Chapter 11 bankruptcy protection under bankruptcy law in a U.S. Bankruptcy Court in New York.
The popular game maker along with three of its affiliates filed for protection in an effort to distance itself from its French parent and find a buyer willing to take the company private. Atari has been struggling to keep up with other game publishers that are creating app versions of its games to appeal to an increasingly mobile platform. Atari followed suit by creating many of its games in app format, but noted that the shift left its finances largely depleted and unable to finance continued growth.
In addition, a failed $28 million-dollar agreement with Atari’s main shareholder, BlueBay Asset Management, also rendered the company unable to release and gain revenue from a game currently in production entitled “Atari Casino.” Its parent company, Atari SA, is also experiencing financial difficulties, and filed for similar bankruptcy protection in France.
“In light of the current situation with BlueBay, we have decided to take what we think is the best decision to protect the company and its shareholders,” said Atari CEO Jim Wilson. “Through these ongoing procedures, and especially the auction process in the U.S., we will seek to maximize the proceeds in the best interest of the company and all of its shareholders.”
The 31-year-old company said it plans to continue operations as normal while it undergoes reorganization and hopes to sell or restructure its assets within 90 to 120 days. The U.S. Atari section has also received approval for $5 million in debtor-in-possession financing from Tenor Capital, which specializes in distressed lending.
Atari is recognized for several popular games, including “Pong,” “Breakout,” “Asteroids,” “Centipede,” “Missile Command” and “Rollercoaster Tycoon.”
If you face bankruptcy issues in your business or would like to discuss the topic above, please call me, Joel Glucksman, at 201.806.3386.
- Practices: Bankruptcy & Creditors' Rights
- Locations: Red Bank, NJ, New York City, Washington, D.C., Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
What to Do If You Are Impacted by a Retailer Bankruptcy Part 2
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
Author: Brian D. Spector
The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Author: Dan Brecher
Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
Author: Brian D. Spector
How Understanding Bankruptcy Trends Can Benefit Your Business
The bankruptcy legal landscape presents both challenges and opportunities for businesses navigating financial distress. Understanding current bankruptcy trends can help businesses make more informed and strategic decisions. Corporate Bankruptcy Filings Trending Upwards Bankruptcy filings continued to trend upwards in 2024. According to statistics released by the Administrative Office of the U.S. Courts, personal and business […]
Author: Brian D. Spector
SEC Takes Actions Against Issuers for Failure to File Form D
In December, the U.S. Securities and Exchange Commission (SEC) announced charges against two privately held companies for failing to file a Form D notice, which is generally utilized for exempt securities offerings. Here, the SEC’s enforcement sends a strong message: compliance with regulatory requirements is not optional and failure to comply can have significant consequences. […]
Author: Kenneth C. Oh
Redefining Labor Relations: NLRB's Pivot from Abruzzo’s Memoranda
On February 14, 2025, the Office of General Counsel (OGC) of the National Labor Relations Board (NLRB) under Acting General Counsel William B. Cowen issued Memorandum 25-05, “New Process for More Efficient, Effective, Accessible and Transparent Case handling.” The Memorandum rescinds nearly all of the Memoranda issued by his direct predecessor, Jennifer Abruzzo, setting the […]
Author: Matthew F. Mimnaugh
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.