NEW YORK CITY -- The U.S. division of Atari filed for bankruptcy protection on Monday, moving to separate from its French parent company. The company said it filed a Chapter 11 proceeding in U.S. Bankruptcy Court in Manhattan amid "adverse trading conditions and limited development funds."
Atari cited the scheduled March 31 expiration of its credit agreement with Bluebay, its main investor and only lender, and said no lending successor has been found.
Founded in 1972 by coin-op legend Nolan Bushnell and Ted Dabney, Atari was one of the first videogame innovators, and is known for such early arcade games as Pong, Asteroids, Centipede and Missile Command. Since Bushnell, the company has changed owners several times. In 2009, Infogrames Entertainment, SA, the parent company of Atari Inc. and Atari Interactive Inc., announced it would be changing Infogrames' name to Atari, SA. In April, Atari SA board member and former chief executive David Gardner resigned. Atari Inc. cofounder Bushnell joined the board as a representative for Bluebay Holdings.
Atari's U.S. group expects to complete a sale or restructuring of all or most assets within 90 to 120 days.