Midway Games Files For Bankruptcy

[Millzy Pt. 2]

The company behind TNA iMPACT!, Midway Games Inc. has filed for Chapter 11 for its U.S. operations. The announcement from Midway notes that the TNA Impact video game has shipped approximately one million units, but that doesn't mean all of those units were sold. The company filed for bankruptcy protection and will continue to operate as it had during the bankruptcy proceedings.
The filing did not come as a shock to those within the company as they had been hurting for some time and had let some staff go a few months back.

TNA sources I've spoken to were under the impression the filing would likely be coming, so they were not caught unaware. A second TNA video game is on the company's docket for the future.

The full press release on the filing reads as follows:

Midway’s U.S. Operations File for Chapter 11 Reorganization

Company notes strong underlying fundamentals, but cites recent change in control as the key trigger in need for planned, orderly reorganization

Midway’s European operations are unaffected and continue business as normal

CHICAGO--(BUSINESS WIRE)--Midway Games Inc. (NYSE:MWY) today announced that the company and its U.S. subsidiaries filed voluntary petitions in U.S. Bankruptcy Court for the District of Delaware for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The filing does not include the company’s non-U.S. operations, which will continue business as normal.

In its filing with the Bankruptcy Court, the company cited that the November 28, 2008, change in ownership triggered accelerated repurchase obligations relating to two classes of Midway debt, which Midway anticipated it would be unable to satisfy.

“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 enters this process with strong underlying fundamentals, as evidenced by solid fourth quarter sales that exceeded expectations in spite of a challenging retail and general economic environment,” Booty added. “Overall, Mortal Kombat vs. DC Universe sales are approaching two million units shipped, TNA iMPACT! has shipped approximately one million units, and our Game Party franchise has sold close to three million units in total.”

Midway expects that Chapter 11 protection will enable the company to conduct its business operations as usual. To that end, Midway is seeking approval from the court for a variety of First Day Motions enabling the company to continue managing its operations in the ordinary course. These motions are typical of the restructuring process, and approval is regularly granted.

About Midway

Midway Games Inc. (NYSE:MWY), headquartered in Chicago, Illinois, with offices throughout the world, is a leading developer and publisher of interactive entertainment software for major videogame systems and personal computers. More information about Midway and its products can be found at www.midway.com.

Source: PWINSIDER.com

 

[Wordlife]

damn that sucks, Midway makes great games. Plus I've been to the Midway Headquarters... its by my school. Sucks they went bankrupt

 

[J]

Hahahah TNA killed Midway lmao.

 

[Wordlife]

^yeah basically.... I can see that too, cause imo that game was TERRIBLE

 

[straight_edge76]

Yeah iMPACT was crap. But Midway still makes some pretty good titles... MK comes to mind.

 

[Wordlife]

the only good game by Midway lol

 

[Tsaalyo Phoenix]

And even MK they pretty much killed with their MK vs. DC idea.

 

[Solid Stinger the Big Boss]

MK vs. DC sold well.

If they're going down its because of the economy and the massive flop that is TNA Shitpact.

 

[Tsaalyo Phoenix]

Of course it sold well, it's Mortal Kombat. It's like a new Harry Potter or Twilight book now; people would buy it no matter what's on the pages. Doesn't change the fact that the idea blew and the game would have sold a lot more had it been an actual MK game.

 

[Solid Stinger the Big Boss]

Probably not. Mortal Kombat has gone downhill. Sales for previous MK games were never anything to brag about. I believe MK vs. DC sold better then most 6th gen MK games.

 

[Solid Stinger the Big Boss]

1.8 million sales for MK vs. DC

Midway is already working on another Mortal Kombat game due to MK vs. DC's success. Not sure if it'll be a crossover or not, but its gonna happen eventually. Thats if Midway can even survive. Many lack luster gaming companies are dying.

 

[straight_edge76]

MK V. DC was teh best MK game to come out since Deadly Alliance imo. Deception was not all that great merely a re-hash of DA if you ask me.

 

[C4]

Midway Games gone bankrupt?

That's terrible news, can't believe this. There are other 'good' titles that they come up with as well, what about those?

How can one single video-game get the whole established multi-national company go bankrupt?

btw, I didn't even read the full post because it's too damn long so if I'm wrong somewhere, correct me and someone summarise it for me..

 

[straight_edge76]

It was likely a combonation of things apart from MK they havent put out any widely popular games imo in a while now.