Midway Files For Chapter 11 Reorganization

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Patrick McCarron

TRMK Admin, Co-founder
Staff member
Everyone knows that <b>Midway Games</b> has been in a tough financial spot since it's former owner <b>Sumner Redstone</b> got himself in a bind and <a href="http://www.gamesindustry.biz/articles/redstone-sells-midway-for-100-000">abruptly sold the company</a> late last year. This action caused all of Midway Games' debts to have to be repaid sooner than planned. We at TRMK haven't covered this news because it we felt wasn't right to sully the release of <a href="http://www.trmk.org/games/mortal_kombat_vs_dc_universe/">Mortal Kombat vs DC Universe</a> with bad news as the game was still starting to appear in stores worldwide at the time. The situation was very complex we felt that posting up the many strings of bad news could appear to be overly negative when we were supposed to be excited at the release of the latest MK title.

So now with that game in stores, and development already in progress on the <a href="http://www.trmk.org/games/mortal_kombat_9/">next Mortal Kombat game</a>, Midway's financial news is a much more important to the future of the series. So we've decided to cover the major events only, and we hope to help explain to the fans what is going on so they understand a bit better instead of letting a misleading headline shape their view of the situation.

The recent news is that earlier today Midway Games made a necessary and expected move to protect it's survival. Today <a href="http://www.businesswire.com/portal/site/google/?ndmViewId=news_view&newsId=20090212005696&newsLang=en">Midway Games filed for Chapter 11</a> with the <b>US Bankrupcy Court</b>. Filing for <a href="http://en.wikipedia.org/wiki/Chapter_11">Chapter 11</a> will allow Midway to reorganize it's business, reduce it's debts and get things moving in a much more positive direction to ensure their survival. Many companies have filed for Chapter 11 over the years, and have successfully emerged a few years later much stronger than before. Midway said they are expecting to be able to continue their daily operations as normal, as is common with Chapter 11 filings. This means that any work in progress already, will continue. If you'd like to know more, read about <a href="http://en.wikipedia.org/wiki/Chapter_11">Chapter 11 on Wikipedia</a>.

We wish the best of luck to all of our friends at <b>Midway Games</b>. We can't wait to see them pull themselves out of this with some great new games over the next few years, like the in-development <a href="http://www.trmk.org/games/mortal_kombat_9/">Mortal Kombat 9</a>. Also of note, Midway's latest game, <a href="http://www.wheelmangame.com/">Wheelman</a> arrives late next month, and the highly anticipated <a href="http://www.trmk.org/games/mortal_kombat_vs_dc_universe/">Mortal Kombat vs DC Universe Downloadable Content</a> should be arriving rather soon as well.
I'm glad such a solution could be found as a bankrupted Midway would've sucked. MK didn't quite do for Midway what Final Fantasy did for Square but I still say it saved the company.
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