FINISH HIM! Midway Files for Chapter 11
Midway Games Inc. (NYSE:MWY) is best known for the game Mortal Kombat, the franchise that encourage kids to rip heads off their opponents at the end of every battle when the narrarator yells “FINISH HIM.” This franchise may actually be finished soon because they had to file for a Chapter 11. Midway put out a press release today announcing that they have filed a voluntary petition in the U.S. Bankruptcy Court for the District of Delaware for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
In December 2008, National Amusements Chairman of the Board Sumner Redstone sold 87% of his stake in Midway to a private investor named Mark Thomas for only $100,000. This sale triggered Midway’s creditors to demand a repayment of debts at about $150 million worth.
“This was a difficult but necessary decision,” stated Midway’s 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.”This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry