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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Comments

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

Submitted by JustChris on Thu, 04/09/2009 - 13:26.

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

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

Submitted by Cerabret100 on Thu, 04/09/2009 - 11:31.

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

Submitted by killatia on Thu, 04/09/2009 - 12:39.

I agree, there need be more insite into this.

http://www.magicinkgaming.com/

http://www.killatia.com/

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

Submitted by DarkSaber on Thu, 04/09/2009 - 11:25.

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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Technogeek: If the developer were male there wouldn't have been a "conversation" in the first place.10/19/2014 - 2:27am

Monte: trolls are just at their absolute worst when it comes to women and feminist. You could bet good money that if the developer were male the trolls would be silent and the conversation would actually focus on the journalism.10/18/2014 - 9:18pm

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Papa Midnight: Monte: That's honestly rather short-sighted. As has been proven with other persons who have been targeted, if it wasn't Quinn, it would be someone else.10/18/2014 - 6:26pm

Avalongod: I think that's part of what gives an esoteric news story like this real life...it taps into a larger narrative about misogyny in society outside of games.10/18/2014 - 3:29pm

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Wonderkarp: Zippy : Havent tried the PS4 controller. might later.10/18/2014 - 2:37pm

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ZippyDSMlee: Wonderkarp: You might be able to if you had a PS4 controller.10/18/2014 - 1:00pm

MaskedPixelante: http://store.steampowered.com/app/327940/ Night Dive starts charging for freeware.10/18/2014 - 12:21pm

Matthew Wilson: the sad thing is there are trolls on both sides of this. people need to stop acting like their side is so pure.10/18/2014 - 12:19pm

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Monte: I feel like GG just needs to die. The movement is FAR to tainted by hatred and BS for it to be useful for any conversation. Let GG die, and then rally behind the NEXT gaming journalism scandal, and start the conversation fresh.10/18/2014 - 10:33am

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Matthew Wilson: while he focused on gg, he did call out both sides crap.10/17/2014 - 7:18pm

Papa Midnight: That was a damn good read offered by Jeff Gertsmann.10/17/2014 - 7:17pm

Matthew Wilson: http://www.giantbomb.com/articles/letter-from-the-editor-10-17-2014/1100-5049/ deferentially a nice write up.10/17/2014 - 6:44pm

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