Midway Games switches credit lines for working capital

Right after publishing its financial report for Q4 of 2007’s fiscal year, Midway Games has released another announcement: It is switching credit lines. The proceeds from the new credit facility will be used as working capital, among other things. Check out the full article for more info.

Earlier, Midway Games published its financial report for the fourth quarter of 2007’s fiscal year. We just got another press release, this time talking about Midway’s change in credit lines.

In the midst of revenues that fell short of expectations, Midway Games has cancelled its US$ 30 million credit line with Wells Fargo Foothill and signed up with National Amusements, Inc., which will grant Midway with US$ 90 million. According to the press release, the said credit facility will be used as “working capital, capital expenditures and other general corporate needs.” Shari E. Redstone, Chair of the Board for Midway, and Sumner Redstone, Midway’s controlling shareholder, both hold positions at National Amusements.

What does this all mean? Well, hopefully we’ll be seeing where this development takes the video game publisher. We’ll keep track of more news regarding this, so stay tuned.