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.


Comments

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

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

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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