The United States arm of Atari (Atari Inc.) has filed for Chapter 11 bankruptcy in an effort to cut its ties with it French parent company, Atari S.A. The company hopes to find a buyer in the next few months to take the company private and change its business focus.
The 31 year old, iconic brand, which is virtually a household word in the U.S., has been plagued with debt problems for decades. The companies ability to grow has been severely hampered by an almost complete reliance on a London financial company BlueBay Asset Management. A $28 million credit line with BlueBay lapsed on December 31st, leaving Atari U.S without any resources to release the video games they are currently working on. Attempts to get additional investment has been unsuccessful due to fact that they are an American company but are listed on the French public stock exchange.
There is no indication as who might purchase Atari, but may be looking for someone who help them keep control of the company. It's also not known if the company will be sold as an entire entity or split up into pieces.