Pong and Centipede creators file for bankruptcy
If you are a fan of Atari, you may want to break out the tissue box for the tears you are about to shed. It appears that the tough economic times have hit the creators of Pong hard and they are having trouble recovering. On a good note, they are learning to adapt.
The video game innovator recently filed for business bankruptcy as they plan to sell or restructure most of their assets while seeking other financing. With a timetable of three to four months in which they are planning on carrying out their business plan for getting out of the red, they are working hard at protecting the company and its shareholders while seeking to maximize their returns. The choice to file for Chapter 11 bankruptcy was seen as the “most strategic option” for the company as they modify the structure of the company to find new channels of income as they tackle the mobile market.
While Atari chose to file for the more complex Chapter 11 bankruptcy due to its large size, it can often times be more beneficial for small businesses and high income earners to file for Chapter 7 bankruptcy. Many individuals assume that because they are high income earners they are not eligible for Chapter 7. That simply is not true. Likewise, there is not only one option for businesses; Chapter 7 may be applied in some instances rather than Chapter 11.
To find out which type of bankruptcy may be most strategic for you to choose, please contact a bankruptcy attorney who is knowledgeable about the various options available to you. Their skills and proficiency in the law will help in deftly guiding you through this difficult and complex time in your life.
Source: Reuters, “Atari files for bankruptcy protection” James Regan, Jan. 21, 2013