Tag Archives: Matt Booty

Midway Fighting To Stay Alive Using Cash Collateral

Posted on February 17, 2009 by Amit Chowdhry


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.

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FINISH HIM! Midway Files for Chapter 11

Posted on February 12, 2009 by Amit Chowdhry

mortalkombat
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.”

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