Midway gets one more month to pay off creditors

As we reported last month (December 2008), Midway Games is in dire financial straits. Creditors could have demanded payment this month (January 2009) but have instead opted to extend the payment deadline to February 19, 2009.

Finances became even more of an issue for Midway when then majority shareholder Sumner Redstone unloaded his controlling interest for only $100,000 to investor Mark Thomas. The change in control triggered clauses in Midway’s debt agreements allowing noteholders to come a-callin’ right now.

Wedbush-Morgan analyst Michael Pachter told GamePolitics the move is…