Atari 2010 Annual Report Download - page 61

ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT
61
• Frank E. Dangeard, Chairman;
• Dominique d'Hinnin, non-executive Vice Chairman, independent director;
• Jeff Lapin, Chief Executive Officer and director;
• Didier Lamouche, independent director;
• Pascal Cagni, independent director;
• Tom Virden, independent director;
• The BlueBay Value Recovery (Master) Fund Limited, represented by Gene Davis;
• The BlueBay High Yield Investment (Luxembourg) SARL represented by Nolan Bushnell.
1.5. FINANCIAL TRANSACTION LAUNCHED IN D ECEMBER 2009 AND FINALIZED IN J ANUARY 2010 RAISING €43
MILLION
In December 2009, Atari launched a financial transaction, which was finalized in January 2010 and enabled to raise €43
million (or €30.4 million paid in cash and €12.6 million paid up by offsetting a portion of the debt held against the Group),
resulting from the free allocation, in December 2009, of warrants (the “Warrants”) to its shareholders entitling them to
subscribe, at the option of Warrant holders, to new shares (the “New Shares”) and/or to bonds redeemable into new or
existing shares (the “ORANEs”), under the conditions set out in the prospectus which received the AMF visa number 09-
367 on December 10th, 2009.
The subscriptions involved:
 7,610,895 New Shares (ISIN FR0010478248) of the Company, representing approximately 64% of the issue,
and
 156,428 ORANEs (ISIN FR0010833053), representing approximately 36% of the issue, with 125,964 (by
offsetting a portion of debt held against the Group for approximately €12.6 million) and 26,672 ORANEs
(representing a cash amount of approximately €2.6 million) subscribed respectively by The BlueBay Value
Recovery (Master) Fund Limited and The BlueBay Multi-Strategy (Master) Fund.
Further to the operation, the BlueBay funds hold approximately 19% of the capital on an outstanding basis and
approximately 64% of the capital on a fully diluted basis (after adjustments).
This operation enables Atari to increase its financial flexibility by raising €30.5 million (after the debt offset) dedicated to
its videogame publishing plan and strengthening shareholder equity.
1.6. T RANSFER , EXTENSION OF THE MATURITY AND REDUCTION OF THE CREDIT FACILITY
In a letter to the Company dated November 4, 2009, BlueBay undertook to have the maturity date of the Banc of America
credit facility postponed to December 31, 2010 to extend its own credit facility on the same terms and conditions as those
preliminary in effect. As per amendment 9 to the loan agreement of April 21, 2006, signed on December 2009, the
maturity date of the senior credit facility has been extended to December 31, 2010.
As part of the financial transaction initiated in December 2009, the Banc of America credit facility has been transferred to
BlueBay as of December 10, 2009.
In addition, the subscription price paid by the BlueBay Value Recovery (Master) Fund with respect to its participation in
the financial transaction (free allocation of warrants) (€12.6 million) was paid up through a set-off against a portion of the
principal amount of the debt held by BlueBay Value Recovery (Master) Fund on the Atari Group. As per amendment 10,
signed in April 2010, the total amount of the credit facility to be drawn as been reduced from €61.2 million to €49.3
million.
As of March 31, 2010, the total amount of the credit facility drown was €5.3 million.
APPLICATION OF THE NORM IAS8 « ACCOUNTING POLICIES, CHANGES IN ACCOUNTING
ESTIMATES AND ERRORS»
On closing the financial statement ended March 31, 2010, the Group identified a error in the calculation of the deferred
tax calculation at March 31, 2009. This error impacts the consolidated financial statement of fiscal year 2008-2009
approved the General Meeting dated September 30, 2009.
In compliance with IAS 8 « Accounting policies, changes in accounting estimates and errors »the financial statement for
the fiscal year ended March 31, 2009 presented for the sake of comparison have been restated as if this error had been
corrected on the first day following of the period presented. The impact of this correction is presented below. :