L.A. Times reported today that Atari Inc. has filed for Chapter II bankruptcy in New York City on January 21st, 2013.
Home of Asteroids and Pong, Atari Inc., filed to "break free" from Atari S.A., their French Parent. so they can make Atari Inc., a private company over the next few months.
If Chapter 11 bankruptcy gets approved then Atari Inc. will be able to become a private company and will have to pay little to no debt to BlueBay. In December Atari had a $28-million dollar debt to BlueBlay, a large European lender, because of this lapsed credit Atari had no resources to complete games currently being developed. Included with those games are “Atari Casino,” a real-money gambling game.