Report: Atari US files for bankruptcy to break from "debt-laden" French parent

The LA Times reports that the US arm of Atari, formerly known as Infogrammes, is filing for bankruptcy in a bid to save itself from the heavy debts of its French parent company, Atari S.A.

The US division employs 40 developers who focus primarily on web and mobile projects. Their goal is to find a buyer to help inject fresh growth and continue on small digital and mobile titles.

A $28 million credit facility with company BlueBay expired December 31st, 2012, leaving Atari without funds to release what titles they currently have in development.

Should their filing for Chapter 11 bankruptcy succeed then the LA Times reports that Atari might ”reemerge with its own resources and little or no debt to BlueBay.” Neither the US arm nor the French parent had been profitable for about a decade, but the last couple of years had seen fortunes turn around, albeit with small profit.