Midway Files For Chapter 11 Bankruptcy

Midway Files For Chapter 11 Bankruptcy

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Start sharpening your forks: Midway has filed for Chapter 11 bankruptcy protection.

Calling it a "difficult but necessary decision," Midway Chairman, President and CEO Matt Booty said, "We have been focused on realigning our operations and improving our execution, and this filing will relieve the immediate pressure from our creditors and provide us time for an orderly exploration of our strategic alternatives. This Chapter 11 filing is the next logical step in an ongoing process to address our capital structure."

The filing covers Midway and it's U.S. subsidiaries but does not include non-U.S. operations, which will continue to operate normally. The company said an ownership change in November 2008 "triggered accelerated repurchase obligations relating to two classes of Midway debt, which Midway anticipated it would be unable to satisfy." The ownership change in question occurred when Viacom and CBS Chairman Sumner Redstone sold his 87 percent interest in the company to private investor Mark Thomas for $100,000, plus $70 million in debt.

"Midway enters this process with strong underlying fundamentals, as evidenced by solid fourth quarter sales that exceeded expectations in spite of a challenging retail and general economic environment," Booty continued. "Overall, Mortal Kombat vs. DC Universe sales are approaching two million units shipped, TNA iMPACT! has shipped approximately one million units, and our Game Party franchise has sold close to three million units in total."

Chapter 11 bankruptcy protection allows companies to continue to operate under the oversight of the courts while reorganizing and making arrangements to satisfy creditors. In some cases, the courts will also provide relief from some or all of a company's debts as part of the process. Ideally, companies emerge from Chapter 11 as stable and viable entities; it is possible for the courts to deny entry into Chapter 11 protection, which can lead to an operational halt and liquidation under Chapter 7 bankruptcy or a return to the pre-bankruptcy "status quo," with essentially the same result, but these cases are rare.

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This marks a sad, sad day in Video-Game Land... I have a lot of respect for Midway, being one of the oldest publishers around who've produced some truly great games... hopefully they'll recover from this.

Yog Sothoth:
This marks a sad, sad day in Video-Game Land... I have a lot of respect for Midway, being one of the oldest publishers around who've produced some truly great games... hopefully they'll recover from this.

Good call, although its been a long while since anything appraoching theit former greatness. Although Psi ops was a good game

Pipotchi:

Yog Sothoth:
This marks a sad, sad day in Video-Game Land... I have a lot of respect for Midway, being one of the oldest publishers around who've produced some truly great games... hopefully they'll recover from this.

Good call, although its been a long while since anything appraoching theit former greatness. Although Psi ops was a good game

I have many fond memories of San Francisco Rush on my N64....

Too bad they decided to go ahead with the neutered version of DC vs. Mortal Kombat. Waste of video game space, and one of the telling reasons why they are no longer a premier publisher. Maybe their people will move on to bigger and better things, but I do think this will be for the best...

Lord_Jaroh:
Too bad they decided to go ahead with the neutered version of DC vs. Mortal Kombat.

how was it neutered? only the super heros who don't kill don't have fatalities but that was DC who did that

sad but bankruptcy protection (chapter 11) isn't the end tho it's hard to come back from

Sadly I predicted the utter money sink that was the oft-delayed and horribly incomplete-feeling TNA iMPACT would spell Midway's end

Oh well, at least they gave us good games in the past like Rush 2049.

In the past they were good, I can't recall a recent game that remotely interested me though. Still, sucks to see them go.

Midway has been putting out flop after flop as of late. No big surprise here.

 

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