Midway - which recently brought us Mortal Kombat vs. DC Universe - has filed for Chapter 11 bankruptcy protection in the United States.
According to USA Today, "Midway said the filing stemmed from a change in ownership in late 2008 that led to accelerated buyback requirements related to two classes of debt that the company did not think it could fulfill."
Chief Executive and President Matt Booty states that the move is a"difficult but necessary decision."
"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".
Chapter 11 is protection against creditors, providing time for the company to organise itself in an attempt to avoid bankruptcy.
It has certainly been an interesting period for the company. It was sold by Viacom in December 2008 for $100,000. It closed its Austin Studio (Blacksite) in the same month having faced a delisting from the New York Stock Exchange in November of the same year.
Things, however, were looking up in January of this year with 1.8 million copies of Mortal Kombat vs DC Universe flying off the shelves.
According to USA Today, "Midway said the filing stemmed from a change in ownership in late 2008 that led to accelerated buyback requirements related to two classes of debt that the company did not think it could fulfill."
Chief Executive and President Matt Booty states that the move is a"difficult but necessary decision."
"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".
Chapter 11 is protection against creditors, providing time for the company to organise itself in an attempt to avoid bankruptcy.
It has certainly been an interesting period for the company. It was sold by Viacom in December 2008 for $100,000. It closed its Austin Studio (Blacksite) in the same month having faced a delisting from the New York Stock Exchange in November of the same year.
Things, however, were looking up in January of this year with 1.8 million copies of Mortal Kombat vs DC Universe flying off the shelves.
Companies:
Midway
Read More Like This