Bankrupt Atari US gets $2M in financing
US arm of iconic publisher contemplating selling assets to successfully break away from French parent.
Atari US has secured $2 million in financing after declaring itself bankrupt last month, and has announced it has an additional $3M waiting for approval.
The money is a form of interim funding for Atari known as debtor-in-possession (DIP) financing, needed after the US arm of Atari filed for bankruptcy to peel away from its French parent. Atari US hopes to regain its fortunes by heading into the mobile and digital space.
"The interim DIP financing enables Atari to finance its near term ordinary course business while evaluating its strategic options," said Atari CEO Jim Wilson. "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."
Atari has hired asset management firm Perella Weinberg Partners to scale up its financial options and to consider a sale of the company's famous assets.
Wilson said, "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 & entertainment, technology and licensing sectors and provides a great opportunity for the Company' stakeholders."
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