The leadership of Atari Inc., what’s left of the gaming legend behind Pong and the Atari 2600, is filing for Chapter 11 bankruptcy protection in an effort to free the company from French parent Atari SA, formerly Infogrames, reports the Los Angeles Times. An unnamed "knowledgeable person" says that the plan is to develop Atari, Inc. into a "modest" business based on "digital and mobile platforms," presumably along with licensed merchandise, which CEO Jim Wilson says brings in about 17 percent of the company's revenues.

The report notes that Atari Inc.’s fortunes have been improving lately, thanks in part to the success of mobile titles like Atari Greatest Hits. And according to the Times, the company has several offers on the table for the $5.25 million it needs in debtor-in-possession financing in order to continue its operations. If its Chapter 11 efforts are successful and Atari finds a new buyer, it could possibly make a comeback, unobstructed by its considerable debt to London-based BlueBay Asset Management.