Midway Might File for Bankruptcy
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December 7th, 2008
A while back we reported that Midway Games majority shareholder Sumner Redstone had sold his 87% stake in the company for a meager $100,000. The repercussions of that move not only sent the stock prices plummeting, but may also cause the company to file for bankruptcy next month.
Midway currently faces $240 million in debt, according to an SEC filing, with $90 million owed to Redstone’s theater business National Amusement. The company currently has 20 days to notify investors of the control change, with creditors getting 30 days to demand payment.
If creditors do demand their money, Midway will be in deep excrement, with the company stating that “it would not have the ability to satisfy its obligations to repay these amounts.”
To aid their precarious financial situation, the company has brought on analyst firm Lazard to “assist it in the evaluation of strategic and financial alternatives available.”
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