US operations for the iconic video game maker Atari have filed for Chapter 11 bankruptcy protection in an effort to separate themselves from their French parent company, which will be filing for bankruptcy as well. But don't expect the Atari name to be taking a bow anytime soon.
Atari took out a $5.25 million bankruptcy financing package with the help of Tenor Capital Management of Manhattan with relatively clear objective in mind. The goal of the New York-based U.S. division is to clearly separate their operations from their France-based parent company, Atari S.A.; one that is expected to post a "significant loss" for its fiscal year 2013.
Atari has stated that the measure only helps to secure the current investments they need to grow in the fields of mobile and downloadable video games. Unfortunately for the legacy of the company, Atari will begin selling off their assets, letting go of up to 200 game titles and franchises beginning over the next few months.