Former Atari CEO bids to save his old gaming company from bankruptcy
Frederic Chesnais did not hesitate a second to try to save Atari when he heard the bad news, he said
IDG News Service - Former Atari Interactive CEO Frederic Chesnais has decided to take a 25.23% stake in the company in a bid to save it from bankruptcy, Atari announced Tuesday.
He will pay principle shareholder BlueBay just 400 euros for 7,451,122 Atari shares, and for mandatory convertible bonds that give him access to another 5,528,736 shares.
Given the urgency of the situation, Chesnais' investment company Ker Ventures also agreed to grant a 250,000 euros in short-term cash financing to European parent company Atari SA, without waiting for the completion of the transaction, and to postpone interest due on the bonds until the end of September, the company said.
The iconic game company filed for bankruptcy protection in the U.S. in January in an effort to separate operations from parent company Atari SA, which is based in France and has also filed for bankruptcy protection. Atari had to file for bankruptcy protection because it was unable to find a replacement for BlueBay, its principal shareholder, which announced its intention to sell its shares in the company in 2010.
Besides backing from Ker Ventures, Atari also received an investment from the Alden Fund, a group that specializes in turning around companies. Alden will acquire a 21 million euro company loan to Atari from BlueBay. The Alden Fund also made available cash financing of US$5 million to the Atari group's U.S. subsidiaries, Atari Inc., Atari Interactive Inc., California US Holding, Inc. and Humongous, Inc.
An initial loan of $2 million has already been made available to the U.S. subsidiaries, Atari said. The remaining $3 million will be available to the subsidiaries under additional conditions including the entry of a final order at a court hearing to be held on Feb. 14, it added.
"It's quite good news for Atari that new shareholders can be found," a company spokesman said. But the situation remains very difficult for the company because of the Chapter 11 bankruptcy protection filing in the U.S., he added. "The judge in the U.S. will play a very important role in the future of the company," he said.
Chesnais was appointed to the position of CEO of Atari SA for a nominal compensation of 1,000 euros a month payable at the termination of the U.S. bankruptcy procedure. Upon closing of the transaction of the share capital, the board has resolved to elect Chesnais as chairman, the company said. Chesnais, who is French and lives in New York, has a strong background in the videogame industry. He was the CEO of Atari Interactive, as well as the CFO and Deputy Operating Officer for the Atari Group, where he helped create and launch many games.
The financial institution where this pilot fish works is moving to a new disaster recovery site, and that means arranging the transfer of several financial-market data servers -- which could take months.
- IT Certification Study Tips
- Register for this Computerworld Insider Study Tip guide and gain access to hundreds of premium content articles, cheat sheets, product reviews and more.
- Jyske Bank extends brand message to more than one million visitors a month
- IBM WebSphere Portal software helps bank offer a clearly differentiated digital experience
- The Big Data Opportunity for HR and Finance
- If CEOs, CFOs, CIOs, and CHROs want to drive their businesses forward, they will need to quickly recognize the enormous value of big...
- Enable secure remote access to 3D data without sacrificing visual perfomance
- Design and manufacturing companies must adapt quickly to the demands of an increasingly global and competitive economy. To speed time to market for...
- The Truth About Virtual Computing for CAD
- If you're a user of graphics-intensive software such as 3D modeling, simulation and analysis, and visualization, you might be skeptical about moving to...
- Virtually Delivered High Performance 3D Graphics
- "A picture is worth a thousand words." That old phrase is as true today as it ever was. Pictures (i.e., those with heavy... All Financial IT White Papers
- What should I look for in a Next Generation Firewall? SANS Provides Guidance With so many vendors claiming to have a Next Generation Firewall (NGFW), it can be difficult to tell what makes each one different....
- Why Are Customers Really Deploying an NGFW? It seems every IT Security expert is talking about the NGFW, but what are people really doing? This webcast covers 5 real-world customer...
- Charting Your Analytical Future - "Making predictive analytics part of your business processes" Webinar This session will show how predictive analytics can be used throughout the organization by anyone looking for answers and how organizations can make...
- On-demand webinar - 7 Keys to Service Catalog Implementation Success Watch this webinar to learn 7 crucial keys to make your service catalog a success!
- Transform Your IT Service Management Watch this webinar, to learn how EasyVista can increase IT productivity & efficiency and deliver streamlined & integrated IT Service & Asset Mgmt.
- All Financial IT Webcasts