Midway manages to buy some time to avoid bankruptcy

It was a month ago when we posted that Midway Games has 50 days to put up US$ 150 million or they’ll go bankrupt. Luckily, they have managed to negotiate with its note holders to give them until February to pay for their debt. An additional month doesn’t sound like much, but Midway will need all the breaks they can get if they want to stay afloat. Details and more inside.

It was a month ago when we posted that Midway Games has 50 days to put up US$ 150 million or they’ll go bankrupt. Luckily, they have managed to negotiate with its note holders to give them until February 19th to pay for their debt. Previously, Midway only had until mid-January. One month doesn’t sound like much, but Midway will need all the breaks they can get if they want to stay afloat.

All in all, Midway has US$ 240 million in debt, but the most pressing issue for them right now is the US$ 150 million that we’ve told you about. This is actually split US$ 75 million each between two groups of holders. Thanks to a fruitful negotiation, Midway was able to to convince one group of these note holders to give them a little more breathing room, like about a month’s worth.

Apart from the US$ 150 million debt to the two groups, Midway Games still owes US$ 90 million to Redstone’s theater business National Amusements. Fortunately, they are not demanding immediate payment.

Whew, that’s a relief. Wouldn’t want to say goodbye to the guys who brought us Mortal Kombat, right? C’mon Midway, you can do it!

• Midway has 50 days to rack up US$ 150 million or it’s game over

Via Shack News