Infogrames, the struggling European game publisher and parent company of U.S. firm Atari, has issued notice to its stockholders that its Annual and Special Stockholders’ Meeting has been delayed from September 29 until mid-October due to certain “quorum requirements” not being met.
Scheduled for 5 pm on October 12 at a Hilton hotel in Lyon, France, the meeting will focus on the company's previously proposed
debt restructuring plan, which serves as the latest part of its continuing efforts to continue operations. Formally announced on September 12, the new plan, if successful, “will permit the Company to have a new industrial investment capacity to cope with interactive leisure challenges,” according to an Infogrames statement issued at that time.
Infogrames representatives note that the plan aims to resolve the company’s debt problem by reducing debt to “historically low levels.” Infogrames currently shoulders a net debt amounting to € 197 million ($250.2 million), which the company notes has “seriously handicapped” its performance and growth.
According to an earlier Reuters report, Infogrames' plan includes a €74 million ($93.9 million) rights issue, in order to ensure that Infogrames will be able to both continue operations and execute on its new financial plan. If successful, the complex plan will result in €55 million ($70 million) in surplus cash on top of eliminating the group's current debt, and according to Infogrames would allow the publisher to “focus on its industrial business and capitalize on the release of next-generation consoles.”