Atari US lifeline plan snags $2m

Atari US lifeline plan snags $2m
Aaron Lee

By Aaron Lee

February 6th 2013 at 11:18AM

Possible asset sale still on as US arm continues breakaway strategy

Atari US’s bid to secure itself a lifeline has come a step closer with the acquisition of $2 million in interim debtor-in-possession (DIP) financing, and another $3m awaiting official documentation and approval.

The US division of the company filed for bankruptcy last month in the hope that splitting off from its French parent company would allow it to restore its fortunes and expand into mobile and digital.

“The interim DIP financing enables Atari to finance its near term ordinary course business while evaluating its strategic options. Our lawyers are already hard at work on completing the final DIP credit documents, which, once approved by the court, will enable Atari to access the remaining $3 million of availability under the loan,” said Atari CEO Jim Wilson.

Atari US has hired Perella Weinberg Partners to look into its strategic options, including a possible sale of assets.
Wilson added: “We hired Perella Weinberg Partners, which is subject to court approval, because they clearly understand and are excited about the significant opportunity associated with the iconic Atari brand and its rich library of classic arcade and more recent game franchises.

“The global reach and breadth of Atari have the potential for significant value creation in games, media and entertainment, technology and licensing sectors and provides a great opportunity for the Company’ stakeholders.”