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Atari's US operations file for bankruptcy protection

Agam Shah | Jan. 22, 2013
Atari SA's U.S. companies are looking to raise capital independently for future growth.

Filing for bankruptcy protection is a way to protect Atari's U.S. operations from creditors, and also from financial obligations of its parent company, said Elizabeth Nowicki [CQ], a professor at the Tulane University School of Law.

"Far fewer would be willing to invest if it is subject to the French parent company," Nowicki said. Assets tied to Atari's U.S. operations are frozen, though daily operations should continue normally.

With bankruptcy protection, it could also become easier for Atari's U.S. operations to raise capital, Nowicki said.

"The interesting thing is what is going to happen from here," Nowicki said, adding that it is likely that Atari's U.S. assets may be bought out by private investors.

 

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