Atari borrows further $4M, settles license dispute, announces release of Dragon Ball Z game

In separate press releases, Atari has announced a settlement of its dispute with FUNimation over licensing of the Dragon Ball Z name as well as its further borrowing of $4M from BlueBay.

The $4M from BlueBay is in addition to $10M in credit that Atari arranged for in October in order "to meet its holiday season financing needs." Among the conditions of this latest borrowing, Atari has terminated its existing distribution agreements with Infogrames and created a new agreement to cover all of North American distribution of Infogrames games for three years.

The dispute with FUNimation involved alleged breaches by Atari of a license agreement between the two companies. With Atari's payment to FUNimation of $3.5M (being a $2.7 million cash payment and a $0.8M reduction in royalty advances), the legal dispute has been resolved and Atari has announced the release of Dragon Ball Z: Budokai Tenkaichi for Wii and PS2.

Coverage at: Gamasutra

Press Releases at Atari Release 1 and Atari Release 2.