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Midway files for Bankruptcy

February 14, 2009 in Industry News comments 20

We've been seeing the symptoms for a while and now it's finally happened. Midway's actually filed for bankruptcy as they have about $150 million in debt. According to Matt Booty, Midway CEO, filing for Chapter 11 bankruptcy will protect them long enough for them to find other alternatives to get their act straight again. To be honest, I'm not really happy about this, not that I bought many of their games but...damn...there goes Mortal Kombat.

"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."

The company cites 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.”
“Midway expects that Chapter 11 protection will enable the company to conduct its business operations as usual,” it states in its press release. “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.”
Seeker X via gameinformer.com »
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Most recently commented on by on Feb 16, 2009

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  • 0
    Razentsu Feb 15, 09
    I don't particularity like the Mortal Kombat series, but it's sad to see an important game series end.
  • 0
    Existence Feb 15, 09
    I've never been a big fan of Mortal Kombat, but still, its sad to see the company going bankrupt. Hope they can get back on their feet again.
  • 1
    Hunskelper Feb 15, 09
    Yup, it finally happened...



    ...3 days ago.
    • 2
      Seeker X Feb 15, 09
      Yeah, you can try harder than that.
  • 0
    Bale Fire Feb 15, 09
    I was hoping the reasonable success of the latest Mortal Kombat would allow them to stay in business, but it appears not.
    • 1
      Koloth Feb 16, 09
      You do know that chapter 11 doesn't mean they are going out of business. Chapter 11 bancruptcy allows the company to reorganize and at least attempt to pay off debt over time to try and stay in business.

      It is chapter 7 bancruptcy that means an end to the company. In chapter 7 all you can do is liquidate all your assets and pay off what ever debt you can afford to pay. So ultimately Midway still has a chance to continue business since they are filing 11 and not 7. Circuit City on the other hand had to file chapter 7.
  • 0
    Tiger of Wu Feb 15, 09
    You know that the end of Midway doesn't mark the end of Mortal Kombat. I think (think) Midway just owns the rights for publishing MK, so one of two things will happen: they'll sell the rights to someone else or they'll die and their ownership of said rights will disappear.

    Fact is, with or without Midway, the MK team can continue. It's highly likely that another publisher (for the love of god, please not EA) will pick them up and they'll continue if Midway burns... well, when they burn.
  • 0
    Blaze Feb 15, 09
    After Deception, Mortal Kombat got boring and repetitive. Shaolin Monks was even better but really it was dying regardless of money. So now this makes Woolworths and Midway to burn? Who's next?
  • 0
    Delta787 Feb 15, 09
    exactly woolworth stay was long overdue
  • 0
    Storm Feb 15, 09
    It's sad to see a great fighting series go. Sure the later games haven't been that great, but who can forget the 'Finish Him/Her!' phrase? I wonder if they will get picked up, it's not like their games haven't been selling extremely well lately either...I hope the series will go on, I want to see a sequel for Shaolin Monks. That game is addicting and fun.
  • 0
    carouselambra Feb 15, 09
    man, marvel vs capcom is a lot more appealing to me than mk vs dc anyway. they're both my secondary choices in their mediums.
  • 0
    King_X2 Feb 15, 09
    I never really cared for Midway that much, but I knew Mortal Combat was a big game they made. Hopefully this doesn't keep happening.
  • 1
    kik36 Feb 15, 09
    Maybe if they would have released MK vs DC like a true MK game it would have been a different story. I sure hope they learned their lesson.
    • 0
      phowell23 Feb 15, 09
      Completly agree. They took a giant shit on their fans by giving them a mortal kombat game that looked like it was made by cartoon network. A mortal kombat game without fatalities is like Call of duty with no guns.
      • 2
        Storm Feb 15, 09
        Well, they weren't as gore-y as usual, but MK vs DC did have fatalities...love Joker's 'toy gun' one.
  • 2
    xxxRockerxxx Feb 15, 09
    Hope Mortal Kombat can continue. Favorite series overall, really liked the fighting gameplay.
  • 1
    Killosity Feb 15, 09
    Mortal Kombat was legendary. The times I've had with that stellar series makes this truly a sad outcome for Midway. Lets hope another developer (NOT EA, FOR THE LOVE OF GOD), picks this up and gives it the attention I think it deserves.
  • 0
    BANDITO ATTACK Feb 15, 09
    i bet theyll think twice before bringing up mortal kombat at the next club meeting :0
  • 1
    Mr Gray Feb 16, 09
    The MK series has been pretty stale for a very long time. Graphics and gameplay were well behind others in the genre, and they never dared to take it seriously.

    Shaolin Monks had some pretty bad scriptwork, but the gameplay/planning was all heading in the right direction. Too bad they never followed up.

    If there was one developer I think should handle this, and would be capable of doing something with it, and think outside the box, i'd go with Activison. I was not a fan of Activision for a while, but in the last decade they managed a pretty sharp turnaround.

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