Atari Seeks Permission to Hold Asset Auctions in July from Bankruptcy Court

Atari Inc., the US division of French parent company Atari S.A., has asked a U.S. bankruptcy court for permission to auction off its assets in July. The assets include the Atari logo, the Test Drive, Asteroids, Pong, Total Annihilation, and Rollercoaster Tycoon franchises.

Atari filed for bankruptcy in January and tried to solicit bids for its entire catalog, but the 15 offers it received were deemed unacceptable. Now the company hopes to divide its assets up and sell them separately in hopes of generating more cash to pay down its debtors.

Atari's minimum bids for the July auction – assuming it sells everything – total almost $22.2 million. The minimum bid for the Atari brand is set for $15 million, $3.5 million for the Rollercoaster Tycoon franchise, $1.5 million for Test Drive, and a paltry $250,000 for the hit RTS game franchise Total Annihilation. Atari Inc. has already secured $5 million through "debtor-in-possession" financing. If the court gives Atari approval, it will hold the auctions between July 16 and July 19.

Sources: Reuters, Wall Street Journal, Joystiq

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