Atari US secures $2 million in financing, prepares to sell assets
After declaring bankruptcy last month, the US branch of Atari has closed $2 million in debtor-in-possession financing. Another $3 million is expected once the credit documents are filed and subsequently approved by the court. The company will use the funds to finance its current operations while "evaluating its strategic options" for restructuring.
Pending court approval, Atari has also hired Perella Weinberg Partners, an independent advisory and asset management firm, to help evaluate said options. Part of that responsibility will be to aid in the sale of Atari's assets, which include everything from Pong to the company's logo. Anyone want to go halfsies on Combat?
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ATARI SECURES US FINANCING
ENGAGES PERELLA WEINBERG PARTNERS AS INVESTMENT BANK
Today, Atari, Inc. and its three US affiliates (collectively, "Atari") announced that they have closed $2 million of interim DIP financing. According to Atari CEO Jim Wilson, "The interim DIP financing enables Atari to finance its near term ordinary course business while evaluating its strategic options. Our lawyers are already hard at work on completing the final DIP credit documents, which, once approved by the court, will enable Atari to access the remaining $3 million of availability under the loan."
Atari also announced today that it, subject to court approval, has hired Perella Weinberg Partners to serve as investment banker to evaluate strategic options, including a sale of Atari's assets substantially as a going concern in a sale "free and clear" of existing liabilities and the complicated capital structure at its parent company in France. Jim Wilson further noted, "We hired Perella Weinberg Partners, which is subject to court approval, because they clearly understand and are excited about the significant opportunity associated with the iconic Atari brand and its rich library of classic arcade and more recent game franchises. The global reach and breadth of Atari have the potential for significant value creation in games, media & entertainment, technology and licensing sectors and provides a great opportunity for the Company' stakeholders."
