Iconic games developer Atari has filed for Chapter 11 bankruptcy protection in the US, in an effort to split from its parent company.
The company, which noably created Pong, Asteroids and Centipede, is hoping to attract independent funding.
“Within the next 90-120 days, the Companies expect to effectuate a sale of all, or substantially all, of their assets in a ‘sale free and clear’ under section 363 of the Bankruptcy Code or to confirm plans of reorganization that accomplish substantially the same result,” it says.
“The Chapter 11 process constitutes the most strategic option for Atari’s U.S. operations, as they look to preserve their inherent value and unlock revenue potential unrealized while under the control of Atari S.A. During this period, the company expects to conduct its normal business operations.”
The company’s also looking to obtain $5.25 million in debtor-in-possession financing from funds managed by Tenor Capital Management.
Atari warned last year that it was strapped for cash, and likely to post a significant loss for 2012-2013. Despite a series of asset sales ands restructuring, the French parent company hasn’t made a profit in 14 years.
Atari Games, Inc split from Atari in 1984, then merged with JT Storage in the 1990s, was bought by Hasbro in 2001 and then later by Infogrames.
Over the last few years, it’s shifted its business from traditional retail games to digital games and licensing, with an increased focus on developing mobile games based on some of its most solid franchises.
It’s recently launched successful titles for iOS and Android, including Atari Greatest Hits, Outlaw, Breakout and Asteroids Gunner. It’s also promised mobile and tablet games based on the Rollercoaster Tycoon franchise and Atari Casino.