Old-school gamers will immediately think of woodgrained game consoles with toggle switches when they hear the name Atari. While Atari made the most popular game console of the early 80s, today the company is more about developing games than anything else. Atari has announced that it has filed Chapter 11 bankruptcy to allow it to separate from its French parent company.
The French parent company was formerly known as Infogames S.A. and is now known as Atari S.A. Atari says that it wants to separate from the structural financial encumbrances of its French parent company and secure independent capital for future growth. Specifically Atari says it's looking for capital for growth in the areas of digital and mobile games.
In the next 90 to 120 days Atari Inc., Atari Interactive Inc., Humongous Inc., and California US Holdings, collectively dubbed the companies, want to sell all or substantially all of their assets in a "sale free and clear" under section 363 the bankruptcy code. The company may also confirm plans to reorganize to accomplish the same result.
Among the assets that Atari will be putting up for sale, include some of those legendary video games from the 80s such as Pong, Asteroids, Centipede, Missile Command, Battlezone, and Tempest. Other brands that Atari May sell off include Test Drive, Backyard Sports, and Humongous. Atari has shifted its business focus from traditional retail games to digital games and licensing with very popular games for Android and iOS devices. Atari also hopes to seek $5.25 million in debtor-in-possession financing.