01/23/2013 10:14:00 AM EST
Bip . . . Bip . . . Bip . . . "Pong" Creator Atari Files for Chapter 11
Atari, Inc., the creator of the primordial video game "Pong", filed
for Chapter 11 Jan. 21 in the U.S. Bankruptcy Court for the Southern
District of New York. Its parent company, Atari SA, simultaneously sought
bankruptcy protection in France. The moves were precipitated by a
cessation of funding from Atari SA's largest shareholder and primary lender. According
to issued statements, the Atari U.S. subsidiaries have remained profitable but
need access to new capital, and are likely to be sold off in a sale under section 363 of the Bankruptcy Code,
which will allow them to continue as a going concern.
Atari recently created an updated version of "Pong" for
iPhones and Android devices. In keeping with the times, the paddles
are now individual creatures - Shaggy, Chompers, Sir Bouncelot, Gnop, and
Razzle - each "with their own unique power boosts and personalities".
Read this article in its entirety at Kelley Drye &
Warren LLP's Bankruptcy
Law Insights blog
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