Several weeks ago, we reported that Atari U.S. was filing Chapter 11 bankruptcy and was looking for buyers, in order to distance itself from the struggling French parent company. Well, former Atari Interactive CEO, Frédéric Chesnais has placed a bid in order to rescue his old stomping grounds from an unfortunate demise or dismemberment.
He's offered to take a 25.23% stake in Atari U.S. and said he would pay the current lead investor and shareholder, BlueBay, for over 7 million Atari shares, as well as pay for the required convertible bonds that would let him have another 5.5 million. Chesnais' investment group, Ker Ventures, has also granted a very large short term cash loan to the parent company, Atari SA, even before the transaction has completed, and has chose not to pile on the interested until September.
Atari US has also had investments from Alden Fund, which is a company whose expertise is in fixing slumping companies. Alden will actually pick up the loan that Atari owes to BlueBay, plus, the company is financing $5 million to Atari's subsidiaries, Atari Inc, Atari Interactive, California US Holding and Humongous Inc. $2 million has already been sent over, with another $3 million becoming available upon the court's approval.
A company spokesperson said on the news,
It's quite good news for Atari that new shareholders can be found. But the situation remains very difficult for the company because of the Chapter 11 bankruptcy protection filing in the U.S. The judge in the U.S. will play a very important role in the future of the company.
If a former Atari CEO wants to save the company, along with some other investors, I can only see good things coming out of this. If everything goes through as it should, this transaction should keep the integrity of Atari intact and the company won't be chopped to pieces and sold to several competitors.