Evolution of the Restructuring Agreement


WEBWIRE – Friday, November 16, 2012

Paris, France, - - On September 28, 2012 Atari (the “Company”) announced it had reached an agreement with its main shareholders and creditors, The BlueBay Value Recovery (Master) Fund Limited, and The BlueBay Multi Strategy (Master) Fund Limited (together, “BlueBay”), further to negotiations relating to the restructuring of its debt and capital structure. This agreement, as amended between the initial parties thereto and Atari Europe SAS on October 26, 2012 in order to specify the implementation of the principles laid out in the initial agreement, (together, the “ Agreement”), contemplates the implementation of two capital increases. The first would be opened to the Company’s current shareholders, and the second would be realized with cancellation of shareholder’s preferential subscription rights in order to restrict it to certain financial or institutional shareholders in the process of being identified. In order to prepare the implementation of the Agreement, the Company has convened a shareholders meeting, to be held on November 30, 2012 in order to obtain the relevant authorizations from its shareholders, and has entered into discussions with various investors in view of securing their participation in the contemplated share capital increases. The Agreement contemplates, as a condition subsequent to such agreement, that by November 15, 2012 the Company would enter into an underwriting agreement with its financial advisor in relation to the rights issue and that the Company would submit a prospectus relating to the reserved capital increase to the Autorité des marchés financiers with a view to obtaining its visa by such date.

The parties to the Agreement have now agreed that at the latest on December 31, 2012, the Company shall have entered into an underwriting agreement, or obtained an irrevocable subscription undertaking, relating to the contemplated rights issue and obtained the visa of the AMF on the related prospectus.

The parties have also acknowledged that given discussions between the Company and institutional and financial investors are ongoing, the resolutions necessary, as the case may be, for a reserved capital increase, would be submitted to an extraordinary shareholders meeting to be held subsequent to the November 30, 2012 extraordinary shareholders meeting. This last extraordinary shareholders meeting will therefore deliberate, in particular, on the resolutions delegating authority to the Board to implement, as the case may be, the contemplated rights issue, and the resolutions relating to the contemplated amendments to the ORANEs 2009 (ISIN FR 0010690081), New ORANES 2009 (ISIN FR0010696153) and ORANEs 2010 (ISIN FR0010833053).

The Company will update its shareholders on the status of these discussions at the time of this shareholder meeting convened to be held on November 30, 2012.

About Atari, SA Atari (www.atari.com) is a multi platform, global interactive entertainment and licensing company. The original innovator of video gaming, founded in 1972, Atari owns and/or manages a portfolio of more than 200 games and franchises, including world renowned brands like Asteroids®, Centipede®, Missile Command®, Pong®, Test Drive®, Backyard Sports® and RollerCoaster Tycoon®. Atari capitalizes on these powerful properties by delivering compelling games online (i.e. browser, Facebook® and digital download), on smartphones and tablets and other connected devices. The Company also develops and distributes interactive entertainment for video game consoles from Microsoft, Nintendo and Sony. As a licensor, Atari extends its brand and franchises into other media, merchandising and publishing categories.
For more information: www.atari.com



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