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
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
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
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.
Atari Inc. Files for Chapter 11 Bankruptcy Protection
Author: Joel R. Glucksman
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.