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Midway secures second debt extension

Mortal Kombat publisher receives slight reprieve on $150 million in outstanding credit; new deadline set for February 12.

Midway remains financially dazed, but nobody is yet calling for creditors to "finish him!" Faced with a seemingly insurmountable debt load of $240 million, the Mortal Kombat publisher revealed in December that it had until mid-January to pay off $150 million of the outstanding credit. Last week, Midway said that it had received a reprieve of sorts, reaching an agreement with a portion of its creditors to delay payment on half of the debt until February 19.

Things could be worse.

Things could be worse.

Now, Midway has gained a measure more of breathing room. Last night, the publisher announced it had reached a new agreement with its creditors, saying that the entire $150 million sum is now due by February 12.

The publisher's grim financial situation was spurred by National Amusement CEO Sumner Redstone's fire sale of his controlling stake in the game maker in November. The 85-year-old media mogul, whose company faces mounting debt of its own, sold his 92.1 million shares for a mere $100,000 to private financier Mark Thomas. The transaction came out to roughly $0.0012 a share, far below the $0.33-per-share price the publisher had been trading at before the sale.

In announcing the first half of its credit extension last week, a senior Midway representative confirmed for GameSpot that the financial upheaval was not expected to affect the ship date of The Wheelman, which is expected to arrive for the Xbox 360, PlayStation 3, and PC on February 16.

90 Comments

  • axeman87

    Posted Jan 21, 2009 6:40 pm GMT

    Thats a real shame. The last MK effort was pretty poor though, and MW certainly didnt get my $100 for it. I am tempted to purchase a copy only because I am hopefull for the next MK, but I think the T rating was to big a kick in the balls.......

  • mvlbr

    Posted Jan 20, 2009 4:07 pm GMT

    Can you say Chapter 7?

  • Defender1978

    Posted Jan 20, 2009 3:12 pm GMT

    Midways hasn't made a spectacular game since MK vs. DC. Yep.

  • faceman420

    Posted Jan 20, 2009 12:06 pm GMT

    Midway hasn't made a truly great game since NFL Blitz 2000...

  • combatsoldier

    Posted Jan 20, 2009 9:48 am GMT

    I really love midway. I hope they pull through. I dont care if EA has to buy them or anything. I just want them to stay alive. I have been playing midway games since they were just in arcades. They are honestly one of the oldest if not the oldest gaming developer. They have made so many hits and I am a huge fan of MK vs. DC. You know. Midway deserves help. That guy that sold them out should be put in jail for real.

  • Justinian103

    Posted Jan 20, 2009 7:35 am GMT

    Whats happening to Midway and Edios are so similar it`s scary. Two publishing companies that put too much faith into old franchises from the 90`s only to be disappointed by them. Now Edios is "revamping" Tomb Raider again in like 2 years time. It` a shame because both Tomb raider Underworld and MK vs DC are good games. I personally haven`t cared about MK in 10 years but MK vs DC caught my attention and it is the best game they developed in a long time. Same for Tomb Raider Underworld. True both games could have been a little better but it is a step in the right direction in terms of quality which is always a good thing. these devlopers and publishers need to understand that quality and labor of love projects will sell because us gamers work hard for our money and will not buy garbage anymore. We all grew up in that aspect. So both Edios and Midway need to put up giant plaques in their building lobbies with that one word on it, QUALITY!!!

  • jadefury27

    Posted Jan 20, 2009 7:09 am GMT

    This'll teach ya to make a "T" rated mortal kombat!

  • biokrysty

    Posted Jan 20, 2009 6:02 am GMT

    dunno

  • demental81

    Posted Jan 20, 2009 4:23 am GMT

    so whats ed boon and those guys ganna do?

  • richioso

    Posted Jan 20, 2009 2:56 am GMT

    wheelman is not going to save Midway

  • masterds64

    Posted Jan 20, 2009 12:30 am GMT

    ...mk vs marvel, wasn't that done by capcom?

    I hope they survive...just long enough to port the mk games to the wii...I'll pay up then...all the other games they made are getting worse (all the arcade-ish stuff is getting dull).

  • TheArcade

    Posted Jan 19, 2009 9:29 pm GMT

    They should bring the Saturn version of Mortal Kombat Trilogy to XBLA, PSN, and Wiiware, with improved visuals and faster load times. I don't care about character in-balances just exe out the bosses in online mode. This MK is another fan favorite besides MK2 and UMK3.

    Someone posted down mentioned Ready 2 Rumble Boxing that was another epic classic. I think it would be well recieved on XBLA/PSN/Wiiware. For Midway to port them to the download circuit would be a genius business move. It can put some money in their pocket.

    Hope for Midway's sake Wheelman does well.

  • hatieshorrer

    Posted Jan 19, 2009 8:57 pm GMT

    I dont see how they can get that money that fast without making the company even more worthless.

  • baggao

    Posted Jan 19, 2009 2:22 pm GMT

    Ready2Rumble on the PSP how that sound to u all?

  • Ballistic90

    Posted Jan 19, 2009 1:15 pm GMT

    Unreal Tournament 3 4ever!!!!

  • dr_jashugan

    Posted Jan 19, 2009 1:13 pm GMT

    Auto Fatality! 8)

  • spikex8

    Posted Jan 19, 2009 11:23 am GMT

    Wow that dude lost like $30 million, if the company DOESN'T go t!ts up he's gonna be kickin' himself

  • GatCloudX

    Posted Jan 19, 2009 11:09 am GMT

    MK vs capcom vs marvel that would be the sh!#

  • X_Maqhoor_X

    Posted Jan 19, 2009 6:52 am GMT

    MK VS Street fighter alpha would be cool also, despite the difference in the fighting system

    my fav
    Noob Saibot VS GUY = WOOOOOOOt

  • jets78

    Posted Jan 19, 2009 6:30 am GMT

    midway is o.k. i just like mk games i hope that they make a deal to put mk vs marvel sooner then later

  • X_Maqhoor_X

    Posted Jan 19, 2009 6:08 am GMT

    I love mortal kombat scince mortal kombat 3 Ultimate one the SEGA Gensis, and I still have the SEGA with the game to play it, And the best Mortal Kombat ever made is the Mortal Kombat Trilogy which came for alot of platforms
    As I said IF they want huge funds, just put Mortal Kombat Trilogy in the PSN PS3 and Xbox Live with a price of 10$, and 100% the Midway would survive.

    Even better, they could enhance Mortal Kombat Trilogy by making it produce 1080P, add new few futures, like 2 Vs 2.. and hell yeah Midway back on track

  • 24k_Solid_Gold

    Posted Jan 19, 2009 6:02 am GMT

    I hope Midway doesn't "die." They're an icon in the gaming world. If Midway goes, a portion of gaming goes with them.

    It's like Blizzard, or SquareEnix going. It just can't happen.

  • baggao

    Posted Jan 19, 2009 5:10 am GMT

    So when is there going to be a " MK vc D.C" for the PSP?

  • combatsoldier

    Posted Jan 19, 2009 4:21 am GMT

    5H1NJ1 hell ya brother our love for midway can never be screwed with. LONG LIVE MIDWAY. also i gave you thumbs up.

  • 5h1nj1

    Posted Jan 19, 2009 4:13 am GMT

    Deadly Alliance was not so bad and Deception is quite ok. Armageddon also has its moments (character creator). And Shaolin Monks excel in cooperative play. Great game. And how did they not "adapt to the technologies" in, lets say, Stranglehold? Visually stunning. Also, the games have overall good ratings. You don't have to like them, Musashi, that's alright, but many people do.

  • combatsoldier

    Posted Jan 19, 2009 3:55 am GMT

    I personally love midway. I have been playing midway games since they were first developed in the 80's and dominated the arcade scenes back when arcades were the coolest place. I have played every midway game and they have way more hits that are awsome. I see everyone saying they are garbage blah blah. have some respect for the longest gameing developer in history. They are legendary. I personally know the president and ceos from midway. They will pull through this. They told me they would. Wheelman isnt the only hit coming this year. They have tons of secrets up there sleeve. You will all see. Give Midway the respect they deserve. They are legendary and can or could never be replaced. I hope, honestly that the Monopoly known as EA atleast buys them. If I am saying this with a big if. Midway goes down under then the gaming world will never be the same. They have created some of the best games I have ever played. Ya theyve created some bad ones but all gameing companies have. They learn from mistakes. MK vs. DC was suprisingly not only good. It was amazing. I even wrote reviews on the game on both consoles. Also MK Trilogy is coming to PSN and Xbox Live next month so that will help also. I plan on buying it on both consoles. I strongly support my beloved Midway. Another thing to think about they are the only ones that stand up to that horrible Madden series. They have Blitz and that game is fun as hell. You cant deny it. It may not be as technical as Madden but thats what makes it great. Midway is a Hit Maker so stop hating and start supporting my favorite game developer. They deserve to pull through. This global recession hit everyone hard. EVERYONE is suffering in one way shape or form. Midway doesnt deserve this treachery. Midway is amazing.

  • Musashi920

    Posted Jan 19, 2009 3:39 am GMT

    See children this is what happens when a good company of the past cannot adapt to the technologies of the present and future. Virtually none of their games after the 16bit era interested me. When MK Deadly Alliance restarted the franchise I was excited but then I played that terrible piece of crap. And after 2 more sequels of MK after that they still didn't even try to restore it to its former glory.

    Midway failed and they deserve to tank. A saving grace for the fans would be if they let a good company take over its better properties like SNK or Capcom buying out the MK series.

  • 5h1nj1

    Posted Jan 19, 2009 3:07 am GMT

    Are you kidding? Some of the MK games were absolutely wonderful. So was Stranglehold and some other games. If this is natural selection, then f*ck natural selection. It's happening too often that good studios go down. I still mourn for Clover Studio. Those guys made two of the best games on PS2 and were were dissolved shortly after. I'de like the "natural" selection to favor those people, who make good games. And this is sadly not happening. Too many other factors at play here unfortunately.

  • Kasrkin_BA

    Posted Jan 19, 2009 2:45 am GMT

    Natural selection at work. If they wanted to stay afloat they should've made some good games. I'm not going to shed a tear if they go belly up. I can't remember the last Midway game that was actually worth playing.

  • JEEBUS_BOGONDO

    Posted Jan 19, 2009 1:03 am GMT

    Maybe midway should stop making a plethora of terrible garbage games. Look at games like GTA IV and MGS4 etc. They cost alot to make, take a long time and alot of work, but instead of 10 crappy games you have 1 great game that makes a ridiculous sum of money. Much more than all those junk games. Midway needs to fire almost all of their game designers and find some talent and make a great game. either that or they get what they deserve. $60 is a lot of money and you should get what you pay for.

  • Strigidae

    Posted Jan 18, 2009 10:26 pm GMT

    Snap! I didn't know shares could sell so low (LOL). It's really a shame since Mortal Kombat really brings back all sorts of memories. Hope they'll pull through.

  • Pete5506

    Posted Jan 18, 2009 10:20 pm GMT

    Its not looking to good

  • riptoe222

    Posted Jan 18, 2009 9:50 pm GMT

    if only they were able to make ut3 bigger and better than other ut's(which are great).. but instead they killed the franchise, it could have really been good for them, especially if they made a single player game from the franchise.. but we all know what really happened with the ut franchise, crash and burn, thanks midway

  • FelixTheGreat15

    Posted Jan 18, 2009 9:14 pm GMT

    I'm glad Midway is being given a second chance, I hope they use it wisely.

  • deuketc

    Posted Jan 18, 2009 5:58 pm GMT

    no street fighter vs mortal kombat please.. no no NO!!!! MK vs killer instinct maybe?? as the fight system is quiet similar. Even MK vs DC sounds crappy...

  • devildemondruid

    Posted Jan 18, 2009 5:10 pm GMT

    everyone buy Mortal Kombat vs dv universe! It's Midways last hope for survival and its a good game!!

  • travisstaggs

    Posted Jan 18, 2009 4:50 pm GMT

    Sucks, I really love the Shadow Heart games they done.

  • chappy_man

    Posted Jan 18, 2009 4:43 pm GMT

    end of midway seems on the horizon. They could really use some help. Oh well i suppose.

  • spydiggity posted Jan 18, 2009 3:42 pm GMT (does not meet display criteria. sign in to show)

    spydiggity

    Posted Jan 18, 2009 3:42 pm GMT (hide)

    "If midway falls under... what will happen to Mortal Kombat?! :'( I cant live without mk..."

    yeah cuz playing the same game with a new name every 2 years is so necessary. MK was great in the mid to late 90s. it's junk now.

  • Extreme124

    Posted Jan 18, 2009 2:21 pm GMT

    Give TNA IMPACT! 2 EA and lets all jam a nail into Midways coffin cause its all over for them.

  • NeonNinja

    Posted Jan 18, 2009 1:44 pm GMT

    That really sucks man.

  • TimDigit

    Posted Jan 18, 2009 12:31 pm GMT

    !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????!!!!!!!!!!!

  • Timstuff

    Posted Jan 18, 2009 11:00 am GMT

    Midway is pretty much dead. There's really nothing on the horizon that can save them, so I don't know why I even pay attention anymore. Pretty much the best thing they can hope to do now is sell all the assets they've got and try to pay off some of their debt. I'm sure EA would love to pick up the Mortal Kombat franchise for a good price. Maybe Atari is interested in their classic 80's arcade collection?

  • Psycold

    Posted Jan 18, 2009 10:36 am GMT

    No way in hell that Wheelman game is going to somehow bring them out of a funk like this, I mean look at the game, it just doesn't look like a very good game and with GTA and other clones on the horizon, it definitely doesn't look good for Midway

  • Fat_Boy_PT

    Posted Jan 18, 2009 9:54 am GMT

    They´ll make it! Creditors Fatality!!!!

  • dude63

    Posted Jan 18, 2009 9:50 am GMT

    Well, I think they might pull through. MC vs DC Universe is still selling like hot cakes and hopefully The Wheelman does as well. However gamesl ike This is Vegas..well..I doubt thats gonna sell well. I hope though they pulll through.

  • jake-lutze

    Posted Jan 18, 2009 8:20 am GMT

    If midway falls under... what will happen to Mortal Kombat?! :'( I cant live without mk...

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