Midway Games Files Bankrupcy

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."