Infogrames has unveiled its debt restructuring plan which essentially dilutes the value of currently held shares, while easing debt burdens through extended loan facilities.
Image The $100 million deal gives the Atari-owning French outfit some breathing space as it attempts to dig itself out of debt. Infogrames has not made a net profit since 1999.
Company boss Bruno Bonnell (pictured) has been attempting to save the company by selling off key assets, while keeping creditors at bay.
A statement from Infogrames said the new plan is designed to ensure that "the company continues operating, and give it the financial means necessary to its turnaround," the statement said.
Exane BNP Paribas analyst Brice Mari told Reuters, "What's lacking is an in-depth operating restructuring plan. What the debt restructuring plan does is allow the company to survive. There are no reasons to feel comfortable with the group's operational situation or the mid-term outlook as Infogrames has sold some of its valuable franchises and studios in recent months."
Infogrames Crisis Deepens as Shares Collapse
By Colin Campbell
Shares in Infogrames have sunk to a record low of 0.25 euros, following yesterday’s announced debt restructuring plan.
Image The Atari-owned group has been trading at 50 Euros just six years ago, but in that time has failed to show a profit. Yesterday’s plan involved diluting current shares and offsetting future debts, to pay current dues. The firm has been attempting to sell off IP and studios, but confidence is not high.
They were f**ked when they didn't give me an Atari T-shirt. I placed a curse on their houses for the next 10 genurashions.
Thats what you get, F**KERS! ALL I WANTED WAS 1 TEE-SHIRT! SEGA GAME ME ONE! AND YOU GAVE HARDLY NORMAL STAFF THE VERY ONE I WANTED! C**TS.
Gr8ness
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