The company announced Monday that its largest shareholder, BlueBay, told Atari that it could no longer expect financial support from the investment firm, as BlueBay’s two largest funds are in liquidation. On that news, Atari SA filed for bankruptcy protection.
BlueBay announced its intent to sell its 29% stake of Atari in October 2010 but no buyer stepped forward. In addition to the shares, BlueBay holds 21 million euros’ worth of Atari debt, making it the sole lender for the firm as well.
Atari plans to sell or restructure most of its assets under bankruptcy. The U.S. portion of the firm has permission from the court to secure $5 million is financing from Tenor Capital and may split off.
In the release, Atari CEO Jim Wilson says, “In light of the current situation with BlueBay, we have decided to take what we think is the best decision to protect the Company and its shareholders. Through these ongoing procedures, and especially the auction process in the US, we will seek to maximize the proceeds in the best interest of the Company and all of its shareholders.”