Midway announced in a press release (February 12, 2009) that it has “filed voluntary petitions in U.S. Bankruptcy Court for the District of Delaware for reorganization under Chapter 11 of the U.S. Bankruptcy Code.”
According to the press release, the company’s recent ownership switch led to to “accelerated repurchase obligations” of debt that the company knew it could not repay. The protection will allow the company to “conduct its business operations as usual.”
Midway Chairman, President and CEO Matt Booty noted in the release that Q4 2008 sales “exceeded expectations in spite of a challenging retail and general economic environment” citing TNA iMPACT!, Mortal Kombat vs. DC Universe‘s and Game Party sales as positives for the company.
Let’s hope this does not have any effect on Midway Amusement Games as well which holds the rights to many of Midway’s earliest arcade games.