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Midway Files For "Reorganization"

Most veteran gamers will feel a pang of sympathy when they read this, primarily because Midway was always a cornerstone of the gaming industry. Thankfully, though, Chapter 11 doesn't spell immediate disaster in the big business world. In fact, Midway simply sees this as a "necessary step."

As Yahoo Finance reports, Midway Games has announced that "the company and its U.S. subsidiaries filed voluntary petitions in the U.S. Bankrupty Court for the District of Delaware for reorganization under Chapter 11 of the U.S. Bankruptcy Code." This doesn't include overseas operations, and the company attributes this move to the recent change in ownership, which "accelerated repurchase obligations relating to two classes of Midway debt." The good news is that this "reorganization" process may allow the company to come out clean on the other side, and maybe they can get back to producing solid entertainment products. Said Midway Chairman, President and CEO Matt Booty:

"This was a difficult but necessary decision. We have been focused on realigning our operations and improving our execution, and this filing will relieve the immediate pressure from our creditors and provide us time for an orderly exploration of our strategic alternatives. This Chapter 11 filing is the next logical step in an ongoing process to address our capital structure."

Booty added that Midway goes into the restructuring "with strong underlying fundamentals, as evidenced by solid fourth quarter sales;" let's not forget the success of Mortal Kombat vs. DC Universe, which has shipped over 2 million copies worldwide. So this certainly isn't the last you'll hear from Midway, but they do have to work through a few snags before everything returns to normal...and it could take a while, too. Just don't go away, Midway! We kinda like having you around.

2/12/2009 Ben Dutka

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Comments (14 posts)

Buckeyestar
Thursday, February 12, 2009 @ 11:03:59 AM
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Hope this doesn't delay any MK vs DC DLC.

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JofaMang
Thursday, February 12, 2009 @ 11:04:03 AM
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I haven't been impressed by Midway in a long time. I hold no nostalgia for a company that falls so far from their consumer base that they have to file for bankruptcy.

Survival of the fittest, and Midway is old, fat and wheezy.

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PS3_Wizard
Thursday, February 12, 2009 @ 11:09:22 AM
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I feel sorry for that Booty guy. His high school year must have been full of torment. I guess his paycheck makes up for it tho.

Maybe he should use some of that dough to get a name change. Its sounds like a male stripper's name..."Matt Booty"

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killzone100
Thursday, February 12, 2009 @ 11:12:06 AM

LOLZ...

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coverton341
Thursday, February 12, 2009 @ 11:14:48 AM

I thought that was what he was doing before Midway. Didn't he change his name to Booty for the purpose of stripping?

On topic: Who the hell is going to make the next MK?!

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Aftab
Thursday, February 12, 2009 @ 11:19:52 AM
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It almost seems as if this ailing economy has more to do with hysteria than an loan lending spree that has been impending for the past 10 years or so. And it is a pity that so many coroporations have sunk because of this.

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slayerkillemall
Thursday, February 12, 2009 @ 11:20:56 AM
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i hate to admit it,but i agree with jofamang.
i havent seen anything good from midway since mk3....good ridance...

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BIG_E
Thursday, February 12, 2009 @ 12:25:00 PM
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Midway lost there way a long time ago.
Mortal Kombat died with those crappy movies.

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Arvis
Thursday, February 12, 2009 @ 1:20:56 PM
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I once saw an ad for the original Mortal Kombat that had a review quote which said:
"Uppercuts Street Fighter into the bottomless pit where has-beens fester!"

..... ha ha ha.

-Arvis

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coverton341
Thursday, February 12, 2009 @ 1:35:40 PM

It was a good time when that statement was a true one.

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Arvis
Thursday, February 12, 2009 @ 3:20:11 PM

Since it is an almost purely subjective statement, I don't think it was ever "true." Certainly not for me, anyways. I don't think MK has ever had the variety, balance, or level of strategy as Street Fighter.

..although MK3 is way better than SF3, but that hardly counts. =D

-Arvis

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Tim Speed24
Thursday, February 12, 2009 @ 3:26:32 PM
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What have you done for gamers lately Midway?

Great name in the arcade days but they could not evolve enough to survive in the new world.

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BTNwarrior
Thursday, February 12, 2009 @ 3:35:31 PM
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What is all this Mortal Kombat hate i'm hearing? sure the game is simpler than other fighters but I actually enjoy being able to become good without having to learn a twenty button and direction combo

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photo K
Thursday, February 12, 2009 @ 5:15:37 PM

Yeah, remember Killer Instinct? That's the only game that I bothered trying to remember "big" combos. Now it's just ridiculous.

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