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.

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Re: Court Document: Midway Will Run Out of Cash in June

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.

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I LIKE the fence. I get 2 groups to laugh at then.

Re: Court Document: Midway Will Run Out of Cash in June

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.

Re: Court Document: Midway Will Run Out of Cash in June

I agree, there need be more insite into this.

http://www.magicinkgaming.com/

Re: Court Document: Midway Will Run Out of Cash in June

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

GamePolitics ShoutBox

Posted 02/09/10 at 03:51pm
DarkSaber: I think he just goes round the internet copy+pasting the same bollocks to get attention.
Posted 02/09/10 at 03:41pm
Valdearg: @DS: I have to admit, I chuckled when I saw the 4 Feb 2010 on that post.. >.<
Posted 02/09/10 at 03:31pm
DarkSaber: Hm, Bioshock. Not that Zippy likes to beat the dead horse by ranting about it for TWO $&%£ING YEARS!
Posted 02/09/10 at 03:30pm
DarkSaber: http://www.escapistmagazine.com/forums/read/9.173063-Bioshock-yet-another-zippy-rant
Posted 02/09/10 at 03:26pm
Valdearg: @DS: Link!! LINK!
Posted 02/09/10 at 03:20pm
DarkSaber: Although, unsurprisingly, he's just being called an idiot alot and criticised for being as illegible as always.
Posted 02/09/10 at 03:18pm
DarkSaber: Oh good lord, I just found Zippy on The Escapist.
Posted 02/09/10 at 03:14pm
Valdearg: IE: Male body/Female Mind or Female Body/Male Mind.
Posted 02/09/10 at 03:13pm
Valdearg: @Zip: TG == Transgendered/Transsexual.
Posted 02/09/10 at 03:09pm
DarkSaber: Forget it Zippy, it's an abbreviation of a big word and so would be wasted on you
Posted 02/09/10 at 03:07pm
ZippyDSMlee: Vlag:....TG?
Posted 02/09/10 at 03:02pm
Valdearg: @DS: Im sure that's what they'd do if it wasn't legal to just tell Gays/TG's to "Screw off," just because they're who they are.
Posted 02/09/10 at 02:50pm
DarkSaber: Whoever told him/her/it that is dumb. They should have done like most companies and made-up some bullshit, yet legal, reason for it not getting the job.
Posted 02/09/10 at 01:18pm
Valdearg: I do agree that it shouldn't be legal. That's for sure.
Posted 02/09/10 at 01:16pm
Andrew Eisen: Shouldn't be. Spirit of anti-discrimination laws would seem to include sexual orientation (and eye color). Plus there's always equal protection and such. Never know until you try.
Posted 02/09/10 at 01:14pm
Valdearg: @AE: Doubtful. Again, it's perfectly legal.
Posted 02/09/10 at 01:10pm
Andrew Eisen: Should have sued (unless that wasn't an option given her financial situation or something). Might have won.
Posted 02/09/10 at 01:00pm
Valdearg: Story about a Male to Female TG who was expressly told she wouldn't be given a job because she was TG. Its not the main point of the story, but explicit, perfectly legal discrimination like this exists.
Posted 02/09/10 at 12:53pm
Valdearg: Lol, I don't know. It may very well be legal to do so. Though that might able to fall under the "race" restriction, depending on how that point is argued.
Posted 02/09/10 at 12:51pm
Valdearg: I don't think they do have any legal recourse. I'll have to dig around, but I seriously believe that if the law doesn't specifically mention Sexual Orientation or Gender Identity, they can still be discriminated against in those 29 states.
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