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Midway Now Facing February Bankruptcy

Struggling publisher Midway may now have another month before it faces bankruptcy, as some of its investors have agreed to postpone a payback deadline until February 19.

After majority shareholder Sumner Redstone sold 87% of the Mortal Kombat publisher for $100K, investors were able to demand repayment due to the change in control.

All together, Midway faces $240 million in debt, though it is primarily concerned with $150 million of that, which is owned in $75 million increments to two groups of holders. As of December, the company did not believe it could immediately pay the $150 million. Midway originally had until 2025 to repay one group, and 2026 for the other.

Previously, the investors had until mid-January to decide if they wanted their money back. Now, Midway has convinced one group to hold off until February 19, and is attempting to persuade the other group of holders to give it just a little more time.

Midway's remaining $90 million debt is owed to Redstone's theater business National Amusements. Oddly, that debt was not mentioned in Midway's update, perhaps implying that National Amusements may not demand immediate repayment.

Chris Faylor was previously a games journalist creating content at Shacknews.

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From The Chatty
  • reply
    January 6, 2009 8:44 AM

    The company that wouldn't die!

    • reply
      January 6, 2009 8:52 AM

      after the garbage they've put out recently, it may now.

      seriously though, MK vs DC, and NO FATALITIES!
      Might as well make need for speed w/o any cars.

      • reply
        January 6, 2009 8:59 AM

        Stranglehold was fun. At least it started out that way, then the polish and fun kinda faded half way through.

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        January 6, 2009 9:42 AM

        Or a need for speed with no cops. Or better yet a need for speed with a speed limit!

        On a slightly related note, I just finished NFS: Undercover... Good game. I dunno why it didn't get better criticial acclaim. It felt alot like Most Wanted but with an updated engine. But it didn't look much better than Most Wanted.

        • reply
          January 6, 2009 10:21 AM

          Isn't need for speed EA? I dont think midway has anything to do with that series

          • reply
            January 6, 2009 10:59 AM

            no it doesn't. but what I was saying is, that you can't take a fundemental portion of your game (the "hook" as it were) and remove it.

            That's just stupid.

        • reply
          January 6, 2009 4:47 PM

          So it has an updated engine, yet doesn't look much better than Most Wanted?

          What's the update then? That it runs like a pile of...?

          • reply
            January 11, 2009 8:47 PM

            No, "looks better" is mostly subjective. That is why.

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