Atari Inc. files Chapter 11 to split from parent
Tel Aviv (MarketWatch) — Atari Inc., the New York interactive entertainment and licensing company with a portfolio of more than 200 videogames, said on Monday that it’s filed to reorganize under Chapter 11 of federal bankruptcy law. The petition, filed in U.S. Bankruptcy Court for the Southern District of New York, is an effort to separate the company from its French parent and secure independent capital, Atari Inc. said. The company’s parent is Atari SA of Paris, formerly Infogrames SA. Atari titles include Pong, Asteroids, Centipede, and Battlezone, among others. The company said in a statement that under its current management, it has “shifted its business from traditional retail games to digital games and licensing with an increased focus on developing mobile games based on some of Atari’s most iconic and enduring franchises.” Atari and two other U.S. affiliates of the parent are also asking the court to approve .25 million of debtor-in-possession financing from funds managed by Tenor Capital Management of Manhattan.
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