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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Andrew EisenI never said you said sexism or harassment doesn't exist and didn't mean to imply it either. No, I'm not cherry picking. Obviously.07/28/2015 - 5:11pm
Andrew EisenNo, gaming companies are not on their knees. That's silly. They're free to listen or not listen as they see fit.07/28/2015 - 5:09pm
Andrew EisenAnd no, you are not labeled a misogynist for simply disagreeing with people like Sarkeesian or Quinn. That is completely untrue.07/28/2015 - 5:08pm
Andrew EisenSorry for the all caps but we don't have the ability to bold in the the Shout box.07/28/2015 - 5:08pm
NatirI never said sexism and harassment doesn't exists, just those few women are making it seem way worse. Are you literally cherry picking one part of the entire conversation going on here?07/28/2015 - 5:08pm
NatirAndrew, if you disagree with people like Anita Sarkeesian or Zoe Quinn, you are labeled as misogynistic. Gaming companies are at their knees when it comes to people like them and gaming journalism. You disagree with them, your reputation is on the line.07/28/2015 - 5:07pm
Andrew EisenNatir - This is what you said: "The point is that these women do very little for the gaming industry but paint it to be a very bad place. From just constant harassment from (male) gamers to just SEXISM IN THE WORKPLACE. Stuff that just isn't true."07/28/2015 - 5:06pm
NatirI'm not arguing anything about sexism and harassment in the workplace... What are you talking about?07/28/2015 - 5:04pm
Andrew EisenYes, you've linked that several times and several times I've explained why that list isn't exactly what it says it is nor is it reflective of the actual criticism.07/28/2015 - 5:04pm
Mattsworknamehttp://www.giantbomb.com/female-protagonists/3015-2287/games/07/28/2015 - 5:01pm
MattsworknameFor the record, here is a list of games with female protagnists from they year 2014, as per giant bomb.07/28/2015 - 5:01pm
Mattsworknameandrew, I think natir may have ment a differnet point. I don't think he was aruging the workplace side, I think he was aruging the diversity in the games themselves, maybe.07/28/2015 - 5:01pm
Andrew EisenAnd I'll repeat this as many times as it needs repeating: no one (except maybe some random, anonymous numb nuts on Twitter) is calling anyone a misogynist simply for disagreeing with Sarkeesian and her ilk.07/28/2015 - 5:01pm
Andrew EisenNatir - What lie? What movement? What does that snide quote have to do with anything?07/28/2015 - 5:00pm
Andrew EisenMatt - Completely disagree. Any thinking person can see that just like with gamers, the most toxic elements, while the most attention getting, are not the majority or representative of the whole.07/28/2015 - 4:59pm
Andrew EisenNatir - Harassment and sexism in the workplace is true. It's been extensively observed and documented. That doesn't mean everything is bad. But that all doesn't mean shining a light on it to try and make it even better is an undesirable move either.07/28/2015 - 4:57pm
NatirThe movement they started is based on a complete lie and that is the real problem. Most people don't realize or those that do, ignore it because of the reprisal they get for disagreeing. You disagree with them and call them out? You are misogynistic now.07/28/2015 - 4:57pm
NatirHere is a good quote from the wordpress site: "Zoe Quinn with her little twine game commands the attention to be in documentaries, to be quoted on Kotaku, as Anita Sarkeesian is claimed to be one of the 100 most influential people in the world."07/28/2015 - 4:55pm
MattsworknameAndrew: its very true what you say, but with Feminism, the toxic fringe has become the main stream face of the movment, to the point where the US rep to the un on womens issues has called feminism a toxic word.07/28/2015 - 4:55pm
Natirdirectly related to games and politics.07/28/2015 - 4:53pm
 

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