Atari, Inc. has secured a total of $5 million in debtor-in-possession financing which, if approved by a court, will help the company operate throughout its recently filed bankruptcy, according to a press release from the company.
The proposed finances would be provided by Perella Weinberg Partners, a firm that "provides advisory and asset management services to a global client base," according to its website. Perella Weinberg Partners would also help Atari to "evaluate strategic options" regarding sales of its assets under Chapter 11 bankruptcy, also provided that the court approves.
According to the press release, Atari has "closed $2 million of interim DIP financing."
"The interim DIP financing enables Atari to finance its near term ordinary course business while evaluating its strategic options," Atari CEO Jim Wilson said. "Our lawyers are already hard at work on completing the final DIP credit documents, which, once approved by the court, will enable Atari to access the remaining $3 million of availability under the loan."
DIP financing applies to companies in Chapter 11 bankruptcy. Though the details have not been disclosed and would still require court approval, DIP financing typically takes priority over an organization's existing debt on the condition that the financed company fulfills certain criteria.
Atari, Inc. and three U.S. affiliates filed for Chapter 11 bankruptcy in late January to separate from its French parent company, Atari S.A., reorganize and refocus the company on digital and mobile platforms.
We've reached out to Atari to clarify the financing proposal and will update this article as more information becomes available.
Update: A representative from Atari confirmed to Polygon that the company has $2 million "accessible now and another possible $3 million after bankruptcy court proceedings."