Video game maker Atari filed for Chapter 11 bankruptcy protection last week in an attempt to separate from their French parent company, according to the Associated Press.
In 1977, Atari introduced the 2600 gaming system that sold more than 30 million units and spawned hit videogames like Space Invaders, Pitfall!, Missile Command and Pac-Man.
In a statement, Atari said its U.S. operations has shifted its focus to digital games and licensing, including developing mobile games. CEO Jim Wilson said the bankruptcy was the “best decision to protect the company and its shareholders.”
In its filing with the U.S. Bankruptcy Court in the Southern District of New York, Atari said it had $1 million to $10 million in assets and $10 million to $50 million in debt. It is seeking approval for $5.25 million in debtor-in-possession financing from investment firm Tenor Capital Management, according to the AP.
Atari said it intends to sell its assets or draft a restructuring plan within the next three to six months.
Much like a Chapter 11 bankruptcy, Chapter 13 and Chapter 7 bankruptcies can help people stop collections and foreclosures, and restructure debt due to the automatic stay that goes into effect during a case.
If your financial situation is a problem, contact our Washington DC and Maryland bankruptcy lawyer now for a free consultation.
Judd’s Judgment: An automatic stay helps debtors become free financially by prohibiting further contact from creditors throughout a bankruptcy.
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