Midway Games Files Bankrupcy

Midway Goes Bankrupt.

@zovadka

Published Feb 15, 2009 8:36 PM CST
Updated Nov 3, 2020 1:37 PM CST

30 seconds read time

Game Publisher Midway games has filed bankupcy under Chapter 11 according to Register Hardware. Most of you will remember Midway brought us the landmark titles "Spy Hunter, NBA Jam, and of course, Mortal Kombat.

Midway's debt became overburdening in December when majority shareholder Sumber Redstone sold his 87.2% stake in the company. The change in ownership caused repayment clauses to kick in allowing creditors to request more than $150 million in outstanding notes that weren't due until 2025.

The events surrounding Midway's crippling debt has spurred a group of the company's bondholders on Friday to file an objection to the bankruptcy. Filed in Delaware court, the complaint claims Midway's plea for relief is "tainted by highly unusual transactions" from Midway insiders which, "to put it charitably, require significant scrutiny."

Zac O'Vadka

Zac provides professional IT support by day, but plays the role of enthusiast by night. He's been building high-end custom computer for the nearly fifteen years and writing PC hardware reviews for the better part of a decade. Aside from computers, he also dabbles in quite a bit of home A/V equipment. Throughout the years, Zac has picked up an extensive knowledge of power circuitry and leverages this to provide the PSU reviews. When not found testing or writing, you can often find him speeding through the winding countryside on his motorcycle.

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