Matt Martin
14:12 (BST)
13/09/2006
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Bonnell defiant in face of shares collapse
Atari CEO asks for help from shareholders
Bruno Bonnell, CEO of Atari, has issued a statement to Infogrames shareholders asking for help to make the company profitable again.
The open letter comes as shares in Infogrames dropped to an all-time low for the company, at just 0.25 euros.
"At this point in time, we need your help to attain our stated goal of making the company profitable again," said Bonnell, a day after revealing a new debt restructuring plan.
"Under the plan, all shareholders, bondholders and bank lenders will be invited to recapitalise Infogrames at the same terms and conditions. The aim will be to sharply reduce our debt while at the same time providing the Group with additional cash for its development," detailed Bonnell.
The company is taking a number of steps to reduce its debt including the sales of studios, internal restructuring, and what it describes as 'a careful selection of franchises for optimal commercial exploitation'.
Bonnell also moved to reassure shareholders that the company has historical experience in dealing with financial troubles.
"Having spent several years dealing with financial problems, Infogrames will now focus on its 25 years old industrial know-how. It will be able to demonstrate the quality of its productions in a healthier financial environment," he said.
Bonnell continued: "The Infogrames Entertainment board of directors has joined me in unanimously supporting this entire plan, which offers our shareholders, banks and bondholders an opportunity to permanently end this crisis situation and lay the foundation for a genuine turnaround by the Company."
"We are counting on your support at what is still a critical juncture for the Group," he said.
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