Understanding the benefits and risks of owning a business is something Florida residents who do so likely are all too familiar with. As good as the intentions may be, there are some times when the need for bankruptcy protection comes up for business owners, however. One company that Florida residents have likely heard of is the gaming company Atari Inc. What they may not have gotten wind of, though, is that even this company is affected by the strains and whims of the economy.
The well known company has been reported to have recently filed for bankruptcy in both Paris and New York, due to inability to relieve itself of its debts. Those businesses with Atari SA in the United States are intended to sell off all or nearly all of the assets in an effort to help with the debt burden and bankruptcy protection. There is a reported $28 million that Atari SA owes to its main creditor, BlueBay.
Atari SA’s chief executive is reported to have explained this move to be the most apt action to take in such circumstances. The company has also explained that their filing for Chapter 11 was the most desirable as it offers ways for the company to maintain worth while at the same time restructuring and strategizing their different incoming proceeds.
Floridians who find themselves in troubled times such as this company may wish to seek out legal counsel in the name of bankruptcy protection. Understanding the different options available and how it could work with your business may benefit you as you begin to evaluate the state of your assets and debts.
Source: Thomson Reuters News & Insight, “Atari files for bankruptcy protection,” James Regan (Reuters), Jan. 21, 2013