Atari 2009 Annual Report Download - page 139

ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT
139
23.2. Capital leases
All amounts below are expressed in thousands of euros.
Assets acquired under capital leases
Balance sheet item
Initial cost
Depreciation
Carrying
amount
for the year
aggregate
Improvements and fittings
733
81
631
102
Total
733
81
631
102
Capital lease commitments
Balance sheet
item
Payments made
Payments outstanding
Residual
purchase
price
for the year
aggregate
Less than
1 year
1 to 5
years
More than
5 years
Total
Improvements and
fittings
106
827
106
26
-
132
7
Total
106
828
106
26
-
132
7
23.4 Pension obligations
Given the small size of the Company‟s workforce, pension obligations are not material.
23.5. Commitment in favor of Atari publishing and IDRS
The Company has granted two successive debt waivers to Atari Publishing,
 on February 28, 2005, in an amount of €25 million and
 on March 31, 2007, in an amount of €11.3 million.
These debt waivers were accompanied by a return-to-profit clawback agreement.
On March 31, 2009, Atari Publishing repaid a portion of the debt subject to waiver in the amount of €2,353,000 out of that
company's net profit for the year.
24. Litigation
In the ordinary course of business, the Company may be involved in various court, arbitral, administrative and tax
proceedings. Although the final outcome of such proceedings is uncertain, the Company considers that any resulting
obligations should not have a material impact on its earnings or financial position.
24.1. Litigation between a former employee and the Company
A significant case arose in a previous year, in which the Company was sued by a former employee who claimed that he
had co-authored one of the Group's best-selling franchises. The plaintiff claimed approximately €17 million in damages
for financial and non-financial loss suffered as a result of the Group's allegedly unlawful distribution of games based on
that theme. At this stage in the proceedings, the Company is categorically rejecting the plaintiff‟s claim of authorship
and/or co-authorship of the franchise and considers the grounds and the amount of the claim to be unfounded.
The parties have filed their pleadings with the court but no significant progress was made in fiscal year 2008-2009. No
hearing date has been set and judgment is not expected before November 2009.
In view of the status of the proceedings and based on the information available, the Company considers that this dispute
should be accounted for as a contingent liability within the meaning of IAS 37. Consequently no provision has been
recorded in relation to this matter.
24.2. Stanley v. IESA, Atari Inc. and the members of the Atari Inc. Board of Directors
On April 18, 2008, an Atari Inc. minority shareholder, filed a Verified Class Action Complaint against Atari Inc., certain of
its directors and former directors, and the Company with the Delaware Court of Chancery. The plaintiff alleges that the
Atari Inc. director defendants breached their fiduciary duties to Atari‟s minority shareholders by entering into an
agreement that allowed the Company to acquire the outstanding shares of Atari‟s common stock at an unfairly low price.
The plaintiff asked the court to enjoin the proposed merger transaction, or alternatively, to rescind it in the event that it
was consummated, and was seeking damages.
On April 29, 2009, the Delaware Court of Chancery approved the negotiated settlement concluded by the parties,
pursuant to which the Company agreed to pay USD 310,000 to the plaintiff.