Atari SA's U.S.-based video-game-making
businesses have filed for bankruptcy protection in Manhattan with the intention
of separating from their unprofitable French parent and seeking independent
funding, Bloomberg
reported. New York-based Atari Inc., maker of video games "Pong" and
"Asteroids," as well as affiliates Atari Interactive Inc., Humongous
Inc. and California U.S. Holdings Inc., asked to be jointly administered in
filings today in U.S. Bankruptcy Court. The U.S. companies are seeking approval
to obtain $5.25 million in debtor-in-possession financing from funds managed by
New York-based Tenor Capital Management, according to the statement. Atari was
founded in 1972 and became a pioneer in arcade and video games. Today it lags
behind game-making giants such as Activision Blizzard Inc., the world's largest
by sales, and Electronic Arts Inc. Read
more.