Midway Staves Off Bankruptcy For Another Month

January 7, 2009 -

As GamePolitics reported last month, Mortal Kombat publisher Midway was sold at the fire sale price of $100,000 to mystery investor Mark Thomas, who also assumed $150 million worth of Midway debt.

The troubled company's creditors held the right to demand repayment later this month, a move which could have driven the final nail into Midway's corporate coffin. But Edge is reporting that Midway's creditors have agreed to extend the deadline to February 19th.

It's worth noting that Midway is scheduled to release Wheelman on February 16th. Could sales and Metacritic scores of the Vin Diesel game help note-holders make up their minds about Midway's fate?

As Wedbush-Morgan analyst Michael Pachter told us last month, it is in the creditors' best interests if Midway survives:

Creditors cannot expect Midway to repay unless the company remains in business.  If the creditors compel bankruptcy liquidation, they'll get something, but arguably less than the full $150 million.  Midway's assets are worth something, but in this market, it is hard to figure out how much.  As a comparison, THQ has an enterprise value of only $80 million, so Midway's assets in liquidation would have to be worth twice as much as THQ's (as a going concern) for the creditors to be repaid.

My guess is that Midway works out a deal with the creditors and remains in business, but they are going to have to start generating sustainable profits soon, or their creditors will become impatient.


Comments

Re: Midway Staves Off Bankruptcy For Another Month

We cannot let Midway die off. There needs to be a ground swell of support for this company!! Even if Wheelman sucks, support it. Its what people need to do. That is of course if anyone actually cares? Please care about a gaming institution like Midway. And for the record, no I don't work for Midway or have any insider interest.

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Re: Midway Staves Off Bankruptcy For Another Month

I just want This is Vegas and all associated DLC - been looking forward to that game more than any other since I heard about it.

 

So glad this should make the cut-date!

 
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MechaCrashOh, no, I totally agree with you that Iron is being a prick and needs to stop, but isn't the usual GG suggesstion for harassment "just ignore it, grow a thicker skin, don't report it"?05/30/2015 - 9:22am
Conster...and even the more stubborn and annoying ones are downright pleasant when compared to IronPatriot's behavior. His behavior is harassment regardless of whether it's aimed at pro-GG or anti-GG people, and it has to stop.05/30/2015 - 8:55am
ConsterMechaCrash: is this about Goth_Skunk's complaint against IronPatriot? Because while I'm anti-GG and strongly disagree with a lot of the stuff the pro-GG people on here say, most of them disapprove of harassment, even if it's 'in the name of GamerGate'...05/30/2015 - 8:55am
MechaCrashMan, some people are just...so immune to noticing irony, you know? The mind boggles.05/30/2015 - 8:35am
InfophileBut hey, I'm not a mod here. It's up to them05/30/2015 - 7:36am
InfophileThat's really not conducive to a good discussion. It just puts people on the defensive. So yeah, I really think IP should try to hold back on that. I'm not sure a ban is in order unless they show they can't or won't change, though05/30/2015 - 7:36am
InfophileLooking through IP's recent posts, there are some that do add to the discussion. There are also a handful which add nothing and are just jabs or point-scoring. It feels like IP is treating the comments more like a battleground than a discussion, honestly05/30/2015 - 7:34am
MattsworknameAhh, that explains why I wasn't aware. I don't follow, like ,nor care for soccer05/30/2015 - 6:50am
Goth_SkunkThe top dog at FIFA.05/30/2015 - 6:49am
MattsworknameWhose Blatter conster?05/30/2015 - 6:42am
ConsterSpeaking of non-video games for a second, I'm seriously disappointed in people for re-electing Blatter, and disgusted by his speech afterwards.05/30/2015 - 6:32am
ConsterHe's at least 5 times as bad as GS.05/30/2015 - 6:31am
Goth_SkunkEIC of Gameranx apologizes for his recent conduct: http://ow.ly/NDBxn Frankly, I'm surprised this wasn't posted sooner.05/30/2015 - 6:31am
ConsterGS does have a point: IP, on his own, causes at least as much harassment, insulting, and holier-than-thou'ness, as all the pro-GG people on this site combined.05/30/2015 - 6:30am
WonderkarpI am not sure I agree that its Harassment, But I do agree that he doesnt bring anything to the conversation. Its too the point where whenever I see his name, I just Thumbs down and move on. Its all buzz words and accusations and rarely civil05/30/2015 - 6:22am
MattsworknameWell, best of luck on that, but im not holding my breath.05/30/2015 - 5:04am
Goth_SkunkI believe the time to pull the plug was long ago, but kept quiet knowing full well Iron Patriot cannot help themself. There is a mountain of evidence to support my claim. In my opinion, it is harassment, and it needs to stop.05/30/2015 - 4:35am
Goth_SkunkIt's not getting me down. Far from it. Nevertheless, the conduct is unacceptable and has gone far beyond what any patient human being ought to be expected to tolerate.05/30/2015 - 4:34am
MattsworknameDont let him get you down Goth, I just go look at kitten videos for a bit to get my posistive mood back05/30/2015 - 4:27am
Goth_SkunkIt is not conducive to a welcoming, open-minded environment that this site is supposed to be.05/30/2015 - 2:33am
 

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