Midway Games Files for Bankruptcy

Authored by Mark Hefflinger on February 12, 2009 - 9:55am.

Chicago - Video game publisher Midway Games (NYSE: MWY) announced on Thursday that it has filed for Chapter 11 bankruptcy protection in the state of Delaware. The company said its change in ownership back in November "triggered accelerated repurchase obligations relating to two classes of Midway debt, which Midway anticipated it would be unable to satisfy." Former majority shareholder Sumner Redstone, chairman of Viacom, sold off his stake in December.

The company had $281 million in debt, and $167.5 million listed as assets in its filing.

"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 noted that the filing does not include the company's non-U.S. operations, which will continue business as normal.

http://www.midway.com