Atari Inc, together with Atari Interactive Inc, Humongous Inc. and California US Holdings Inc. want to secure independent funding to develop digital and mobile games.
Atari’s Pong was an arcade game credited with helping to create the multi billion pound video games industry but it’s more recent titles which include ‘Centipede’, ‘Missile Command’ and Rollercoaster Tycoon’ have been less successful.
Atari said in December it was looking to raise cash and was talking to investors.
It is believed Atari US hopes to find a buyer to take the firm private, subsequently allowing it to focus on mobile and digital games.
Atari’s revenue dropped by 34% in 2012 and 43% the year before. Profits, meanwhile, have also been relatively small, while Atari SA share prices are now worth less than a single euro.
The company is also said to be reliant on London’s BlueBay Asset management for cash, which has left Atari US unable to release a number of games currently in development.
Atari Inc has since secured financing worth $5.25 million to continue operations, and will emerge from bankruptcy with little or no debt should it find a buyer.
In a statement, the companies said, “with this move the US based Atari operations seek to separate from the structural financial encumbrances of their French parent holding company, Atari SA”.
Atari SA, formerly known as Infogrames SA has been struggling financially for years.
The US operations of Atari have shifted their business from retail games to digital games in recent times and have become a growth engine for Atari SA.
“The Chapter 11 process constitutes the most strategic option for Atari’s US operations as they look to preserve their inherent value and unlock revenue potential unrealized while under the control of Atari SA,” the statement said.
Neither Atari SA or Atari Inc. were available for comment.