More Reviews
REVIEWS DRAGON: A Game About a Dragon Review
Sporting stylish hand-drawn visuals, offbeat humor, and retro gameplay, this Medieval fantasy game eschews violence in favor of adolescent behavior.

The Evil Within: The Consequence Review
Juli Kidman faces her fears in a terrifying finale.
Release Dates
NEW RELEASES Oddworld: New 'n' Tasty
Release date: Out Now

Farming Simulator 15
Release date: 05/01/15


LATEST FEATURES BAMF BABES #6: The Boss
"One must die and one must live. No victory, no defeat. The survivor will carry on the fight. It is our destiny... The one who survives will inherit the title of Boss. And the one who inherits the title of Boss will face an existence of endless battle."

Top 10 Characters That Would Make Great DLC for Mortal Kombat X
What characters could survive a guest appearance in MKX? Here's a hint: Clowns are pretty evil.

LEADERBOARD
Read More Member Blogs
FEATURED VOXPOP UrbanMasque
The Joys of RPing
By UrbanMasque
Posted on 04/24/15
As some of you probably know I work with Corsair to help cover their gaming product launches and create content around their gaming-event based video coverage. Recently, I was asked by Corsair to participate in one of their Throwback Thursday Gaming Videos which basically interviews current...

GAMING NEWS

Atari Files Chapter 11 Bankruptcy

Posted on Monday, January 21 @ 07:55:00 Eastern by Keri_Honea

Atari has indeed filed for Chapter 11 bankruptcy, but its reasons for doing so aren't as dire as they seem. Atari Inc. and three of its affiliates filed for Chapter 11 reorganization as a method to break the American-based business away from its French parent, Atari S.A. They also hope to find a buyer in the next few months to make the company private. According to the LA Times, their plan is to grow a "modest business focused on digital and mobile platforms."

Atari itself has been steeped in financial troubles for several decades. Atari in the US has slowly been improving over the last few years, mostly thinaks to developing an Atari "greatest hits" compliation for smart phones and the web. The French parent has also been steadily improving over the last couple years, but hasn't been largely profitable due to its subsidiary, Eden Games, which has been up for sale and continually loses money.

What has really killed Atari's profitability is its practically complete reliance upon a London financial company, BlueBay Asset Management, for liquid assets. On December 31st, a $28-million credit with BlueBay lapsed, which halted Atari's work on releasing games currently in progress.

As part of Atari Inc's reorganization plan, it has secured a commitement for $5.25 million in debtor-in-possession financing in order to continue operations and release these games. As soon as the Chapter 11 is complete, and assuming it is successful, Atari Inc. could walk away with little to no debt owed to BlueBay. As a result, Atari's businesses in France would either hunt down a buyer or dissolve altogether.
Tags:   Atari
FOLLOW ME ON TWITTER. YOU KNOW YOU WANT TO.


More from the Game Revolution Network




comments powered by Disqus

More On GameRevolution