Atari Moves Forward in Restructuring, Settles with FUNimation

By Carlos Bergfeld, Dec 10, 2007 4:36pm PST Troubled North American game publisher Atari has completed the first steps of its restructuring process. The company's CEO recently resigned after mounting losses forced Infogrames to enact a serious restructuring plan.

The company borrowed an additional $4 million from BlueBay High Yield Investments to allow Atari "to meet its holiday season financing needs," according to the announcement. Undoubtedly, these financing needs include the company's settlement with animation studio FUNimation over royalties owed for properties associated with Dragon Ball Z.

It seems the bulk of the $4 million loan will go toward paying the $3.5 million settlement to FUNimation. Atari still has exclusive rights in North America for video games in the Dragon Ball Z franchise through January 2010.

No longer a developer, Atari also renegotiated its publishing and distribution agreements with parent company Infogrames, and gave the Paris-based publishing house license to the Atari name for the restructuring initiative in connection with U.S. company's website.

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