By Frank Ling, GN Senior Writer
Atari, which has experienced major financial problems over the past year and a half, is asking its shareholders for help and patience as the company attempts to reorganize and get its feet back on the ground.
In an open statement to shareholders, Bruno Bonnell – CEO of Infogrames/Atari – stated, "At this point in time, we need your help to attain our stated goal of making the company profitable again. Under the plan, all shareholders, bondholders and bank lenders will be invited to recapitalize Infogrames at the same terms and conditions. The aim will be to sharply reduce our debt while at the same time providing the Group with additional cash for its development." Infogrames, Inc. took over Hasbro Interactive in 2001, which included the subsidiaries Atari, Microprose and Game.com.
Bonnell reassured investors that the company would be able to resurrect the ailing business with past experience and a new business model. "Having spent several years dealing with financial problems, Infogrames will now focus on its 25 years old industrial know-how. It will be able to demonstrate the quality of its productions in a healthier financial environment," Bonnell said. "The Infogrames Entertainment board of directors has joined me in unanimously supporting this entire plan, which offers our shareholders, banks and bondholders an opportunity to permanently end this crisis situation and lay the foundation for a genuine turnaround by the Company. We are counting on your support at what is still a critical juncture for the Group.”
Atari is considered the granddaddy of all video game companies, and was established in 1972 by Nolan Bushnell. Its debut into the arena of video games was kicked off with the introduction of the game “Pong,” a simple coin-op video game that allowed players to compete with one another in a table tennis simulation game.
