Viewing Post from Thursday Feb 12, 2009
Midway Files For Chapter 11 Bankruptcy
Neither new ownership, nor a delay on payments could prevent what some saw as simply inevitable -
Midway has filed for Chapter 11 Bankruptcy.
After Midway was sold for a paltry $100,000, some investors were able to demand reimbursement due to the change in leadership. They initially had until mid-January to decide if they wanted to collect, but the deadline was postponed until February 19.
In all, Midway faces $240 million in debt, though only $150 million of that could be due by February 19. The company originally had until 2025 and 2026 to pay the money back.
The company plans to reorganize but "conduct its business operations as usual," with CEO Matt Booty noting that "Midway enters this process with strong underlying fundamentals, as evidenced by solid fourth quarter sales that exceeded expectations in spite of a challenging retail and general economic environment."