Midway Sings Swan Song

It looks like the company known as Midway is sun setting, soon to fade away forever. On May 21, U.S. Bankruptcy Court Judge Kevin Gross approved a liquidation plan that will see Midway pay back less than 16.5 percent of debt owed to "unsecured noteholders" and 25 percent of what is owed to "unsecured credit holders."

Midway filed for bankruptcy protection in Feb. of 2009, and managed to generate some $33 million in cash from the sale of assets like Mortal Kombat to Warner Bros. (a Time Warner company). In May of 2009, Midway’s creditors sued former Midway majority stakeholder Sumner Redstone and his daughter – former Midway chair Shari Redstone, and Midway board members over the 2008 sale of the company to investor Mark Thomas. Thomas settled with creditors quickly, but Redstone and associates did not. That lawsuit continued until Feb. of this year, when the same bankruptcy judge dismissed the Redstone portion of it.

A lawyer for Midway told Bloomberg that Redstone’s National Amusements agreed to pay approximately $1 million USD into a "liquidation trust" in return for the dismissal of the lawsuit.

Unsecured creditors walk away with about $9.2 million (owed about $36.7 million collectively) and unsecured noteholders (owed about $155 million) will be paid $25.5 million.

Source: Bloomberg via Gamasutra

Tweet about this on TwitterShare on FacebookShare on Google+Share on RedditEmail this to someone


  1. 0
    sharpshooterbabe says:

    I remember playing their racing games on my N64: RUSH!



    "It’s better to be hated for who you are, then be loved for who you are not." – Montgomery Gentry

  2. 0
    Rodrigo Ybáñez García says:

    mortal_kombat1fatality.jpg fatality image by Kainthebeast


    Too bad, really. But somehow, there were a point when they stopped to being relevant on any level. Sadly, DC Universe Vs. Mortal Kombat kinda was their last chance but didn´t make it well at all.


    ———————————————————— My DeviantArt Page (aka DeviantCensorship): http://www.darkknightstrikes.deviantart.com

Leave a Reply