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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E. Zachary KnightZippy, So you can't find even one?08/29/2014 - 1:04pm
ZippyDSMleeAndrew Eisen:Right because shes prefect and never exaggerates... *rolls eyes*08/29/2014 - 12:53pm
SleakerAnd honestly, nearly all of the games she references, or images she depicts I've always cringed at and wondered why they were included in games to begin with, from pinups through explicit sexual depictions or direct abuse. I think it's cheap storytelling.08/29/2014 - 12:35pm
Sleaker@AE - aren't most people fundamentally misunderstanding her at this point? haha.. On a related note I think a lot of the backlash is coming from males that think she is telling them their 'Generic Male Fantasy' is bad and wrong.08/29/2014 - 12:33pm
Andrew EisenAnd no, I don't think the female community would be upset over the performance of a case study in and of itself. Possibly the mostivations behind such a study, the methodology or conclusions but not the mere idea of a case study.08/29/2014 - 12:29pm
Andrew EisenAmusingly, these videos aren't saying you can't/shouldn't use tropes or that sexual representations are inherently problematic so those are very silly things to have a problem with and indicate a fundamental misunderstanding of the series.08/29/2014 - 12:29pm
SleakerDo you think the female community would get extremely angry over a male doing a case study on the negative impact of sex-novels and their unrealistic depiction of males and how widespread they are in american culture?08/29/2014 - 12:25pm
SleakerThe other thing that people might find problematic is that they see no problem with sexual representations of females (or males) in games. And realistically, why is there anything wrong with sexual representations in fiction?08/29/2014 - 12:24pm
SleakerTo even discuss or bring up these issues at a cultural level to begin with. Going straight for games to many probably feels like a huge overstepping given that it's interactive story in many cases, and when you're telling a story why can't you use tropes.08/29/2014 - 12:21pm
SleakerI think a large part of the controversy stems from the idea that games aren't culture setters, but culture reactors, and simply depict what is already in culture. So people don't care that games use tropes or are blind to them because we've failed ...08/29/2014 - 12:20pm
AvalongodBesides, what better way to make her point for her than to respond to her opinion by behaving like a misogynistic asshole. Sure, it may be a troll account, but that doesn't make it "ok"08/29/2014 - 12:19pm
AvalongodWhether Sarkeesian is "right" or "wrong" is not relevant, neither she nor any other woman should have to expect that her opinion will be met with death threats or even just sexist language.08/29/2014 - 12:18pm
Andrew EisenOh, may as well. Zip, I challenge you to cite three specific examples from the TvW videos (use direct quotes and time stamps) and explain how/why they ring hollow or are over exaggerated.08/29/2014 - 11:56am
Andrew EisenZip - Bullies on both sides? What both sides? And of course bullies are worse than people who aren't bullies.08/29/2014 - 11:23am
Neeneko(2) yes, male tropes also have problems and gender studies looks at those too. But this highlights a privilage problem, the idea that if male issues are not brought up too female issues should not be discussed.08/29/2014 - 10:42am
Neeneko@ZippyDSMlee - jumping back (1) one can acknowledge systemic problems without requiring every male be a Neanderthal.08/29/2014 - 10:42am
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ConsterI don't get why Amazon decided to buy this "Twitch" fellow, really. It took him ages to beat Pokemon.08/29/2014 - 8:31am
ZippyDSMleeIt goes without saying that we need to et rid of the bullies on both sides that are far worse than Sarkeesian or Quin will ever be.08/29/2014 - 8:24am
ZippyDSMleeI'm talking more about the genreal movement and how silly it is, as for Sarkeesian half of what she is says rings hollw while the other half tend to be over exsagerated.08/29/2014 - 8:22am
 

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