Midway Games, a video game publisher that created the popular video game, Mortal Komabat, filed for Chapter 11 bankruptcy on February 12, 2009.
One of their former majority share holders, Sumner Redstone, sold off 87 percent of his stake in the company in late November, 2008. A private investor by the name of Mark Thomas bought the shares for $100,000 plus $70 million in debt. This allowed Midway’s creditors to request full repayment for two series of Midway Bonds. After the company obtained extensions from the bondholders, Midway decided to go ahead and file for bankruptcy protection so they could restructure their debt. The company owed $150 million in debt to its bondholders.
Midway spokesman Geoffrey Mogilner reportedly stated, “We felt this was a logical next step for our organization, considering the change in control triggered the acceleration of the repayment options.” According to Moligner, the company will “reorganize and to come out on the other side stronger.”
Although Midway has filed for Chapter 11 bankruptcy, their business operations outside of the United States are not included in the filing. First Day Motions have been sought in the bankruptcy proceedings, by Midway, so that it can continue normal business operations and to maintain ordinary options. More information can be found on the Nupex Portal and blog.
The video game publisher also owns franchises for Mortal Kombat, NBA Jam and Blitz. Midway was set to come out this spring with two new games, The Wheelman” and “This Is Vegas.” There was no mention of these new games in Midways announcement of the bankruptcy filing.

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