Particularly worrisome are the severe cuts envisioned in the needed modernization of the submarine fleet - arguably the most valuable and certainly among the most flexible of sea-going platforms, given their important roles in sea control and intelligence operations.

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To get their huge debts under control, telecom companies will have to sell assets and partially privatise some of their more valuable operations.

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"The Chapter 11 process constitutes the most strategic option for Atari's US operations as they look to preserve their inherent value and unlock revenue potential unrealized while under the control of Atari SA, " the statement said.

BBC: Atari US operations file for bankruptcy protection