Atari files for bankruptcy

The intention is to separate the US business from the unprofitable French parent (Atari SA.) and seek independent founding, several media reports. Atari Inc. together with three of its affiliate, Atari Interactive Inc., Humongous Inc. and California U.S. Holdings Inc., has filed for Chapter 11 reorganization in U.S. Bankruptcy Court in Manhattan, which permits reorganization under the bankruptcy laws of the United States.