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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Sleaker@MP - I hope you didn't suffer a loss of your mental faculties attempting that.07/28/2014 - 3:48pm
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Matthew WilsonI am sure the 3ds im more then powerful enough to emulate a GBA game.07/28/2014 - 9:54am
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E. Zachary KnightSleaker, the DS has a built in GBA chipset in the system. That is why it played GBA games. The GBA had a seperate chipset for GB and GBColor games. The DS did not have that GB/GBC chipset and that is why the DS could not play GB and GBC games.07/28/2014 - 7:25am
IanCI dont think Nintendo ever gave reason why GBA games a reason why GBA games aren't on the 3DS eshop. The 3DS uses chips that are backwards compatable with the GBA ob GBA processor, after all.07/28/2014 - 6:46am
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Matthew Wilsonbasically "we do not want to put these games on a system more then 10 people own" just joking07/27/2014 - 8:13pm
MaskedPixelanteSomething, something, the 3DS can't properly emulate GBA games and it was a massive struggle to get the ambassador games running properly.07/27/2014 - 8:06pm
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