Court Document: Midway Will Run Out of Cash in June
Court Document: Midway Will Run Out of Cash in June
April 9, 2009
A heavily-redacted statement filed last week by mysterious Midway owner Mark Thomas has been added to U.S. Bankruptcy Court records.
Despite the confidentiality edits, some interesting nuggets of information are contained in the document:
- Midway will run out of cash in late June
- Midway has no games set to launch in that window that might provide an influx of cash
- Midway overstated the value of the Mortal Kombat franchise
- Midway has operated at a loss for most of the last decade
- In 2008 CitiGroup failed to find anyone interested in acquiring Midway
- Mark Thomas initially offereed $1,000,000 for Midway but lowered his offer to $100,000 after re-assessing the risks; by necessity, the deal was finalized quickly and Thomas says that he did not have time to conduct normal due diligence.
Unfortunately, the juicier bits appear to have been redacted, leaving us to wonder how - and by how much - Midway managed to overvalue the MK series; which companies have been bidding on Midway's carcass; and how Midway actually benefitted from being acquired for a mere $100K.
DOCUMENT DUMP: Grab the 44-page PDF here.
UPDATE: According to a report in the Chicago Tribune, a Midway spokesman insists that the troubled publisher has enough cash to make it to August, and possibly beyond.
A PUBLICATION OF THE ECA
SUBSCRIBE
LOGIN / REGISTER
Crispy Gamer
GamePolitics ShoutBox
Posted 03/18/10 at 06:44pm
hayabusa75: Isn't the upper class supposed to be footing most of this bill?
hayabusa75: Isn't the upper class supposed to be footing most of this bill?
Posted 03/18/10 at 06:05pm
Austin_Lewis: Of course, that ignores the fact that for the next 4 years, the people will be taxed without 'benefit' from the bill.
Austin_Lewis: Of course, that ignores the fact that for the next 4 years, the people will be taxed without 'benefit' from the bill.
Posted 03/18/10 at 06:04pm
Austin_Lewis: If we go by the CBO's past estimation failures, they're about 300% short on the actual cost.
Austin_Lewis: If we go by the CBO's past estimation failures, they're about 300% short on the actual cost.
Posted 03/18/10 at 05:21pm
ZippyDSMlee: *punt*Roll call, whos on and how are you doing?
ZippyDSMlee: *punt*Roll call, whos on and how are you doing?
Posted 03/18/10 at 12:07pm
JDKJ: No, I did you the favor and said it for you.
JDKJ: No, I did you the favor and said it for you.
Posted 03/18/10 at 12:06pm
Valdearg: What I said was while I may have implied long term accuraccy, and that might have been incorrect, my greater point that the CBO report calculated reduced deficits, expanded coverage, and lower costs is still 100% accurate. :D
Valdearg: What I said was while I may have implied long term accuraccy, and that might have been incorrect, my greater point that the CBO report calculated reduced deficits, expanded coverage, and lower costs is still 100% accurate. :D
Posted 03/18/10 at 12:06pm
Valdearg: Like any good politician, I don't believe I said "I was incorrect." :P
Valdearg: Like any good politician, I don't believe I said "I was incorrect." :P
Posted 03/18/10 at 12:02pm
JDKJ: If you'd said "I was incorrect" 10 shouts ago, I'd have quit twisting your arm to get you see the obvious 10 shouts ago.
JDKJ: If you'd said "I was incorrect" 10 shouts ago, I'd have quit twisting your arm to get you see the obvious 10 shouts ago.
Posted 03/18/10 at 12:00pm
JDKJ: You were they one assuming 100% accuracy. In all caps, no less.
JDKJ: You were they one assuming 100% accuracy. In all caps, no less.
Posted 03/18/10 at 11:59am
Valdearg: Yes, my implication that the long term estimates were facts was incorrect, but the short term calculations are absolutely facts, and even the long term estimates are still useful in attempting to determine exactly what will happen with the bill.
Valdearg: Yes, my implication that the long term estimates were facts was incorrect, but the short term calculations are absolutely facts, and even the long term estimates are still useful in attempting to determine exactly what will happen with the bill.
Posted 03/18/10 at 11:58am
Valdearg: I do. The Short term costs are actually calculated facts. The long term estimates aren't necessarily 100% accurate, but to assume that they can't possibly be accurate because someone said they might not be 100% accurate is also wrong.
Valdearg: I do. The Short term costs are actually calculated facts. The long term estimates aren't necessarily 100% accurate, but to assume that they can't possibly be accurate because someone said they might not be 100% accurate is also wrong.
Posted 03/18/10 at 11:57am
JDKJ: When someone says, "I could be wrong but, as best as I can tell, X," X ain't a fact.
JDKJ: When someone says, "I could be wrong but, as best as I can tell, X," X ain't a fact.
Posted 03/18/10 at 11:53am
JDKJ: It's too early in the morning for you to be deaf, blind, and dumb drunk. A "my best guestimate" can't be a fact. Don't you understand the difference between the two?
JDKJ: It's too early in the morning for you to be deaf, blind, and dumb drunk. A "my best guestimate" can't be a fact. Don't you understand the difference between the two?
Posted 03/18/10 at 11:41am
Valdearg: By how much depends on variables that can't necessarily be predicted at this point in time. And yes, those Facts are accurate only so far into the future, but those estimates can certainly be used to support this measure.
Valdearg: By how much depends on variables that can't necessarily be predicted at this point in time. And yes, those Facts are accurate only so far into the future, but those estimates can certainly be used to support this measure.
Posted 03/18/10 at 11:40am
Valdearg: And I'm saying, as far as the CBO report goes, the facts that it does put forward are deficit reduction, reducing costs, and expanding costs. Those ARE facts.
Valdearg: And I'm saying, as far as the CBO report goes, the facts that it does put forward are deficit reduction, reducing costs, and expanding costs. Those ARE facts.
Posted 03/18/10 at 11:30am
JDKJ: You were the one championing a qualified estimate as an indisputable fact. I'm merely pointing out that it's far from indisputable. So says the estimator.
JDKJ: You were the one championing a qualified estimate as an indisputable fact. I'm merely pointing out that it's far from indisputable. So says the estimator.
Posted 03/18/10 at 11:27am
Valdearg: Or are you only breaking that argument out because the CBO says that this bill is a good thing for our deficit?
Valdearg: Or are you only breaking that argument out because the CBO says that this bill is a good thing for our deficit?
Posted 03/18/10 at 11:27am
JDKJ: The CBO says that, to the extent it is possible to accurately predict defict reduction over the long term, it is likely to reduce the deficit. That's your idea of "a fact that don't lie?"
JDKJ: The CBO says that, to the extent it is possible to accurately predict defict reduction over the long term, it is likely to reduce the deficit. That's your idea of "a fact that don't lie?"
Posted 03/18/10 at 11:26am
Valdearg: Would you be singing the same tune if the CBO came back saying that the bill will likely double the deficit in 20 years??
Valdearg: Would you be singing the same tune if the CBO came back saying that the bill will likely double the deficit in 20 years??
Posted 03/18/10 at 11:26am
Valdearg: @JDKJ: Just because there is a margin of error doesn't mean that the numbers aren't at least psudo-accurate.
Valdearg: @JDKJ: Just because there is a margin of error doesn't mean that the numbers aren't at least psudo-accurate.
Copyright © 2007 ECA. All rights reserved.
Game Politics and Game Politics logo are trademarks of the ECA.
Game Politics and Game Politics logo are trademarks of the ECA.
Comments
Aren't they supposed to have run out of cash on at least 3 seperate occasion now? Rummaging down the back of the sofa must have been more helpful than previously thought.
--------------------------------------------------
I LIKE the fence. I get 2 groups to laugh at then.
There has to be some illegal intentions for a $100k total buyout. especially considering Midway was already in the toilet, and no one has done practiaclly anything to change it's current course.
I agree, there need be more insite into this.
http://www.magicinkgaming.com/
I am saddened by the passing away of Midway, not necessarily because of the content they put out, but it strikes out one less game developer in the Chicago area, and the biggest one to boot.
GameSnooper