Midway Fighting To Stay Alive Using Cash Collateral
Despite what we were saying before, Midway Games Inc. (NYSE:MWY) will actually be staying in business for a while now. Although the Mortal Kombat company filed for Chapter 11, the Bankruptcy Court for the District of Delaware has allowed them to use cash collateral to continue financial operations. THis includes paying salaries and offering benefits to employees. Midway was also authorized to use cash collateral to pay vendors and suppliers.
“Approval of these motions is an important first step in this planned and orderly reorganization, enabling Midway to continue to operate as usual during this process,” stated Matt Booty, Midway’s Chairman and CEO in the announcement. “We remain confident in Midway’s ability to use this proven process to address our capital structure and explore our strategic alternatives.”
Midway is based in Chicago, Illinois. They made this announcement in a press release yesterday.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry