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Infogrames requests extension for interest payments

Troubled Infogrames, parent company of games publisher Atari, is seeking an extension to deadlines given for repayment of 13.4 million Euros, due March 15th. The firm is also hoping to re-establish credit lines previously terminated by HSBC Business Credi

Troubled Infogrames, parent company of games publisher Atari, is seeking an extension to deadlines given for repayment of 13.4 million Euros, due March 15th. The firm is also hoping to re-establish credit lines previously terminated by HSBC Business Credit.

The figure under negotiation with bond holders is interest for debt amounting to 23 million Euros, which must be paid before March 31st. Infogrames must also repay 4.6 million Euros of interest on a separate debt, by April 1st.

The company recently confirmed it would be putting up Atari's internal development studios for sale, in a bid to raise capital to tackle Infogrames' financial woes. Reflections, Melbourne House, Paradigm, Shiny and Eden Studios will all find the For Sale sign outside their front doors over the coming months, while around 250 US staff are expected to be laid off in a bid to curb cash flow.

Last week, Nasdaq warned Atari that if it did not raise the minimum value of shares above $1 for ten consecutive days by April 30th, it will be delisted from the US stock exchange.

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Matt Martin

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Matt Martin joined GamesIndustry in 2006 and was made editor of the site in 2008. With over ten years experience in journalism, he has written for multiple trade, consumer, contract and business-to-business publications in the games, retail and technology sectors.

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