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PaulHellard
02-13-2009, 01:37 AM
http://www.businesswire.com/news/home/20090212005696/en


Midway’s U.S. Operations File for Chapter 11 Reorganization

Company notes strong underlying fundamentals, but cites recent change in control as the key trigger in need for planned, orderly reorganization

Midway’s European operations are unaffected and continue business as normal


CHICAGO--(BUSINESS WIRE (http://www.businesswire.com/))--Midway Games Inc. (NYSE:MWY) today announced that the company and its U.S. subsidiaries filed voluntary petitions in U.S. Bankruptcy Court for the District of Delaware for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The filing does not include the company’s non-U.S. operations, which will continue business as normal.

In its filing with the Bankruptcy Court, the company cited that the November 28, 2008, change in ownership triggered accelerated repurchase obligations relating to two classes of Midway debt, which Midway anticipated it would be unable to satisfy.

“This was a difficult but necessary decision,” said Midway Chairman, President and CEO Matt Booty. “We have been focused on realigning our operations and improving our execution, and this filing will relieve the immediate pressure from our creditors and provide us time for an orderly exploration of our strategic alternatives. This Chapter 11 filing is the next logical step in an ongoing process to address our capital structure.”

“Midway enters this process with strong underlying fundamentals, as evidenced by solid fourth quarter sales that exceeded expectations in spite of a challenging retail and general economic environment,” Booty added. “Overall, Mortal Kombat vs. DC Universe sales are approaching two million units shipped, TNA iMPACT! has shipped approximately one million units, and our Game Party franchise has sold close to three million units in total.”

Midway expects that Chapter 11 protection will enable the company to conduct its business operations as usual. To that end, Midway is seeking approval from the court for a variety of First Day Motions enabling the company to continue managing its operations in the ordinary course. These motions are typical of the restructuring process, and approval is regularly granted.

http://www.dmwmedia.com/news/2009/02/12/midway-games-files-bankruptcy

DuttyFoot
02-13-2009, 02:42 AM
Yeah i read that too on gamespot.com too. the giants are either falling, or losing money and that really sucks.

JoshBowman
02-13-2009, 04:16 AM
Midway has been in a downward spiral since right after the time they bought Ratbag here in Adelaide, took all their IP and then fired everyone (they were the one's who originally came up with Wheelman and were developing it when Midway bought them).

I would say good riddance but I know that a lot of really talented people will lose their jobs while the nameless money hungry suits at the top will just find work at another company and blame the bankruptcy on the economy.

SheepFactory
02-13-2009, 06:23 AM
This was gonna happen recession or no recession.

P_T
02-13-2009, 01:11 PM
A sculptor friend of mine, who's a big fan of Superman (complete with his own Supey tattoo and self sculpted 18" Superman figure) as well as Mortal Kombat, made an accurate comment when he heard about the MK vs DC crossover. "Well, looks like they're getting desperate".

mrpeace
02-13-2009, 02:01 PM
Few saw this coming...Job cuts, salary cuts...but midway goin off....thats really hard!!!

AdamHerbert
02-13-2009, 03:28 PM
This was gonna happen recession or no recession.

Indeed. Midway has been struggling for over a year now. Their games have been plagued by poor sales.

IMO it's due to lack of quality and no original IPs.

DecWest
02-13-2009, 04:02 PM
no new IP and diminishing quality is spiral many games companies are facing these days.

TetraLynx
02-13-2009, 04:11 PM
I've never seen so many companies file for bankruptcy at once in all my life. Wonder how many will fall before all is said and done.

RobertoOrtiz
02-15-2009, 05:56 AM
I found this on Digg:

Quote:

GamePolitics has combed through federal court records for additional insights into Midway's recent bankruptcy. They have learned that Midway claims $167,523,000 in assets versus $281,033,000 in liabilities, owing $150M to Wells Fargo Bank alone. Other companies they owe include Epic Games, Warner Bros. and Best Buy

http://www.gamepolitics.com/2009/02/13/list-bankrupt-midway039s-creditors?%3F

JoshBowman
02-15-2009, 11:01 PM
There's also a hunt underway to discover who this Mark Thomas guy is who recently bought Midway for $110,000 and now looks to be getting anywhere up to $30 million if Midways Chapter 11 Bankruptcy filing is successful. People are starting to suspect a bit of insider trading or something to that effect.

Gentle Fury
02-18-2009, 10:59 PM
guess you can only lean on mortal kombat for so long.....although sega is somehow still making sonic games and nintendo is still banking off mario.

richcz3
02-20-2009, 05:00 PM
Indeed. Midway has been struggling for over a year now. Their games have been plagued by poor sales.
IMO it's due to lack of quality and no original IPs.LINK (http://www.shacknews.com/onearticle.x/55983)
"One issue popped up again and again: Midway's decision to license Unreal Engine and use it for ALL its games," wrote Variety's Ben Fritz of his interviews with former Midway staffers.

The technology had been licensed to give Midway a common technical base for its projects, but individual teams lacked the know-how to tweak the engine for their own purposes. "It was a ton of new technology which they just weren't capable of doing. It put all the games way behind schedule," said an anonymous ex-employee.

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