Midway today
announced that they have been given a reprieve from having to liquidate their assets and have been given protection from their creditors to keep operating as a company. Basically this means that Midway will not be shut down anytime soon while they work out deals with the creditors the company owes money to.
In approving the motions, the court authorized Midway, among other things, to utilize its cash to maintain ongoing operations pending a final hearing; to continue salary and expense-reimbursement payments and other benefits to employees; to honor and perform obligations under its customer programs, such as price protection and Market Development Funds (MDF) programs, regardless of whether these obligations arose before or after the Chapter 11 filing; and to pay certain pre-petition trade claims held by critical vendors. Midway has received court approval to continue using its existing cash-management system and its pre-petition bank accounts and check stock. In addition, the company is authorized under the Bankruptcy Code to pay vendors and suppliers in the ordinary course for post-petition goods and services.
"Approval of these motions is an important first step in this planned and orderly reorganization, enabling Midway to continue to operate as usual during this process," said Matt Booty, Chairman and CEO. "We remain confident in Midway's ability to use this proven process to address our capital structure and explore our strategic alternatives."
The
Mortal Kombat team can continue to develop the next
Mortal Kombat fighting game in the series,
Mortal Kombat 9.
