CEO Jim Wilson said the moves were the “best decision to protect the company and its shareholders.” The auction process in U.S. bankruptcy proceedings will “maximize the proceeds” going to shareholders, he added.
Creditors include accounting firm Deloitte & Touche, and retail stores Kmart and Wal-Mart Stores, although none are owed more than $250,000. Blue Bay is not listed as one of the U.S. operations' creditors.
Atari, which turned 40 last year, was a videogame pioneer with games like “Pong” and “Centipede,” but has changed ownership several times amid financial problems. In its filing with the U.S. Bankruptcy Court in the Southern District of New York, Atari said it had $1 million to $10 million in assets and $10 million to $50 million in debt. It is seeking approval for $5.25 million in debtor-in-possession financing from investment firm Tenor Capital Management.
Atari said it expects to sell its assets or confirm a restructuring plan within the next three to six months.
Atari S.A., which trades on the Euronext Paris market of NYSE Euronext, has requested trading of its shares be suspended.