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Atari Secures $10 Million For Continued Operations
by Simon Carless
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October 25, 2007
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Struggling publisher Atari has announced it has secured a $10 million credit facility in order to "build inventory for the 2007 calendar holiday season and for day-to-day working capital needs", following the recently announced company restructuring.
That restructuring saw French-headquartered parent Infogrames appoint Curtis G. Solsvig III as the new chief restructuring officer at its 51 percent owned U.S. subsidiary, following the removal of all but three board members earlier in the month.
According to an official Atari statement, funds affiliated with BlueBay Asset Management have purchased $3 million of outstanding loans, and the $10 million in credit is being advanced by BlueBay High Yield Investments, a significant shareholder of Infogrames Entertainment, S.A., Atari's majority stockholder.
However, the statement also notes that: "The $10.0 million does not fully satisfy Atari's funding requirements and additional financing is being sought." The company most recently announced a $69.7 million yearly loss.
Curt G. Solsvig III, Chief Restructuring Officer of Atari, said, "This revised Credit Facility is a major step in addressing Atari's liquidity needs and providing financing to support its near term business plan."
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