Atari 2009 Annual Report Download - page 113

ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT
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The parties have since entered into an out-of-court settlement pursuant to which Atari Inc. paid USD 60.000 to Ernst &
Young on June 30, 2008 and Ernst & Young abandoned its claims.
26.4.3. Research in Motion Limited v. Atari Inc. an d Atari Interactive Inc.
On October 26, 2006, Research in Motion Limited ("RIM") filed a claim against Atari Inc. and Atari Interactive Inc.
(together referred to as “Atari”) with the Ontario Superior Court of Justice. RIM is seeking that it be established that (i) the
game BrickBreaker, as well as the copyright, distribution, sale and communication to the public of copies of the game in
Canada and the United States, does not infringe any Atari copyright for Breakout or Super Breakout (collectively
“Breakout”) in Canada or the United States, (ii) the audio-visual displays of Breakout do not constitute a work protected
by copyright under Canadian law, and (iii) Atari holds no right (notably intellectual property) in Breakout under US or
Canadian law. RIM also submitted a claim for legal costs.
In August 2007, the Court ruled against Atari‟s December 2006 motion to have the RIM claims dismissed on the ground
that the Canadian courts did not have jurisdiction.
On January 19, 2007, RIM added claims to its case requesting that it be established that (i) its game Meteor Crusher
does not infringe Atari copyright for its game Asteroids in Canada, (ii) the audio-visual displays of Asteroids do not
constitute a work protected under Canadian law, and (iii) Atari holds no right (notably intellectual property), title or interest
in Asteroids under Canadian law.
Plazmic Inc., a subsidiary of RIM, has joined the proceedings. Atari Inc. decided to file a counterclaim for breach of
copyright on Breakout, SuperBreakout, Asteroids and Asteroids Deluxe in Canada.
In December 2006, Atari Interactive Inc. initiated proceedings before the Federal Court for breach of copyright in
Canada. Insofar as the proceedings before the Ontario Superior Court of Justice are in progress, Atari Interactive has
accepted that the proceedings before the Federal Court be suspended pending the decision of the Ontario Superior
Court of Justice.
No further progress has been made in the proceedings In August 2008, RIM offered to pay USD 250.000 by way of an
out-of-court settlement. Negotiations between the parties are ongoing.
26.4.4. Stanley v IESA, Atari Inc. and the members of the Atari Inc. Board of Directors
This dispute is described above.
NOTE 27 – REL ATED PARTY TRANSACTIONS
27.1 RELATIONS WITH BLUEBAY RECOVERY FUND AND ITS AFFILIATES
At March 31, 2009, BlueBay is the Company‟s principal shareholder and is represented on Atari's Board of Directors by
Gina Germano as well as by the BlueBay Value Recovery Master Fund Limited. Moreover, Frank E. Dangeard, non-
executive Chairman of the Board of Directors has been appointed as BlueBay's special advisor.
During the period ended March 31, 2009, BlueBay and its affiliated funds performed the following transactions:
 BlueBay granted the Company a three-month bridging loan in an amount of €30 million, bearing interest at a
rate of 15%, notably for the purpose of financing the Cryptic Studios acquisition. This loan was fully repaid when
the ORANE-BSA 2009 bonds were issued (see Note 1 – Significant events of the year). The interest expense
for the year on the BlueBay bridging loan came to €0.5 million. BlueBay also received a €0.9 million
arrangement fee for the loan.
 The investments funds, The BlueBay Value Recovery Master Fund Limited and The BlueBay Multi-Strategy
(Master) Fund Limited – which are both administered by BlueBay Asset Management Plc – undertook to take up
a portion of the ORANE-BSA issue launched on December 10, 2008. In addition, by way of a letter dated
December 3, 2008, BlueBay Asset Management Plc gave an irrevocable commitment to take up this issue up to
a maximum amount of €40.5 million. Atari undertook to pay the legal and financial fees incurred by BlueBay in
connection with this transaction for up to €0.8 million.
 BlueBay had undertaken that if the negotiations with Banc of America to extend the current €15 million credit
facility are not successful, it will provide a shareholders‟ loan in an equivalent amount which would mature on
December 31, 2009. The financial terms and conditions of this loan would be substantially the same as those of
the Banc of America credit facility.
 By way of a letter dated December 5, 2008 BlueBay undertook to add a further tranche to the above-mentioned
shareholder loan representing a maximum of €15 million. If this facility is used an arrangement fee representing
6% of the available amount and a drawdown fee totaling 6% of the amount utilized would be payable to
BlueBay. The other financial terms and conditions are similar to those of the Banc of America credit facility. No
drawdowns had been made under this additional facility at March 31, 2009.
 On October 25, 2007, BlueBay granted Atari Inc. a USD 10.0 million credit facility which was increased to
USD 14.0 million on December 14, 2007. During fiscal year 2008-2009, the Company purchased this facility and
repaid in full the amount owed to BlueBay by Atari Inc. at the time of the 2009 ORANE-BSA issue (see Note 1 –
Significant events of the year).