Hoping to dodge a doomsday asteroid, Atari files to reorganize finances

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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.