Atari has been hallowed as a classic video game system and game-maker for years. But now, the United States branch of the company is filing for Chapter 11 bankruptcy in an effort to separate from the French parent company that has they enslaved to debts. In France, the parent company also has to file for bankruptcy. Atari said in a recent press statement that the move is necessary and may be able to help them secure the investments that they need to grow in the new technological advances of video games. In this generation, most video games are mobile and downloadable. Atari is a classic gaming company that needs new funds in order to transition into the new way that games are being made. Atari’s U.S. operations are now working on digital games and are developing mobile games for smart phones which can be downloaded as apps.

According to NBC News, the United States branch of Atari has been doing better than any of the European branches in recent months. Atari in the U.S. is making the switch to digital games in order to keep up with the trends, but their brick-and-mortar stores are waning. As a result, they lost a lot of revenue and needed to file for bankruptcy in order to gather the funds necessary to start their new venture into digital gaming. According to the CEO Jim Wilson, the move was the best decision to protect the company and shareholders. Atari will be holding an auction which they hope will bring in some of the money that they need to maximize the proceeds going to shareholders.

Atari has a variety of creditors including Kmart, Deloitte & touché, and Wal-Mart. Thankfully, they don’t owe more than $250,000 to any of their creditors. Blue Bay is not listed as one of the U.S. operation’s creditors, though this was the company that invested a significant sum of money into the company. According to the bankruptcy filing, Atari has between $1 million and $10 million in assets and has between $10 million and $50 million in debt. They want a $5.25 million debtor-in-possession financing from investment firm Tenor Capital Management but it is not yet known whether or not the company will succeed in obtaining this refinancing.

Atari was the creator of classic games like Pong and Centipede, but the company has been slightly shadowed by more innovative a futuristic gaming companies with advanced technologies. Atari says that it expects to sell its assets or confirm a restricting plan within the next three to six months. Whether you are dealing with a business bankruptcy or a personal one, this is often the best way to restructure tour finances and get back on track. When you declare a Chapter 13 bankruptcy, you can set up a payment plan that will enable you to cover any debts.

During the bankruptcy, you will be protected from any creditors. They cannot spark a lawsuit against you while you are under bankruptcy protection, which will keep you from being forced to pay large sums of money or be stuck without your property because of repossession. If you need more information about bankruptcy, then a lawyer in your area can help. You should never attempt to file for bankruptcy without a legal professional by your side. Using this directory, you can locate a nearby attorney who will be able to help you file the documentation necessary and can walk your through the bankruptcy process. With this reliable attorney on your side, you can get a sound and solid bankruptcy that can put you back on track for the future!