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Midway golden parachutes bronzed

By Brendan Sinclair, GameSpotPosted Apr 16, 2009 2:56 pm PT

Bankruptcy court approves incentive plan that sees key employees reap reduced bonuses, but company first needs to survive or sell for at least $30 million.

Last month, bankrupt publisher Midway's proposed $8 million worth of employee incentive plans raised a number of eyebrows, most notably those of the company's creditors. Given that the highest outstanding bid for Midway is $30 million--just enough to cover the secured debt owed to owner Mark Thomas--other creditors cried foul at the idea of more than a quarter of the company's total worth being given away in bonuses.

Midway's current crisis casts doubt on when--or if--there will be a sequel to TNA iMPACT.

Court filings this week revealed that the publisher has an amended incentive plan in place. Earlier this month, the bankruptcy court approved changes to the plan that would throttle back the bonuses severely.

According to a GameSpot review of court filings, the revised plan consists of two milestone criteria. The first milestone will be reached if Midway enters into agreements to sell off assets that total $30 million or more. The second milestone will be reached when such deals close, so long as the net sale proceeds still total at least $30 million. If Midway can present a plan to get out of bankruptcy that is then approved by its creditors, both milestones will be considered met.

As for how much the bonuses are, key employees that are part of the incentive plan will be able to split a collective bonus not to exceed $600,000 within three days of meeting the first milestone. The second milestone payment starts at $1 million to be divvied up by the key employees, with that pool growing by $75,000 for every extra $1 million the asset sale(s) brings in above the $30 million target.

49 Comments

  • CHILENO39

    Posted May 7, 2009 9:01 am PT

    GOOD THING THERE IS STILL CAPCOM!!!! I MEAN RATHER MIDWAY THEN CAPCOM IF YOU LOOK AT THE QUALITY OF THE GAMES

    RIP MORTAL KOMBAT.

  • abualwa

    Posted May 7, 2009 6:59 am PT

    thank you on this Great game

  • necronaux

    Posted Apr 21, 2009 10:03 am PT

    Bet the 'key employees' getting the bonuses aren't any of the actual workers (coders, programers, artists, etc.).

  • mrorang3

    Posted Apr 21, 2009 9:38 am PT

    Poor Midway.......so great at one point, yet so "sucking wind" the next. Hopefully the majority of everyone here has been following the catastrophy that is the current management and accountants of this once great kompany (that one's for you Pangamaster). As everyone can agree Mortal Kombat as a whole has kicked every sort of ass, since it's first reveal many a moons ago. I remember walking into our local mall arcade (yes malls actually had these at one point, ha) and seeing that giant 50" projection tv blasting some sort of fighting game..... that looked like real life people!! I was hooked! And it wasn't long before I decapitating local cats, threating my parents with, "I'll "finish" you!", and trying to pull my face off ....so my skull could breath fire on someone! Yes, I was also a child of that generation where video game violence was the problem child for every "problem child". So needless to say, I've seen Midway at it's best, and now currently at it's worst.
    I don't agree with the switching of certain "key" members, the kick backs, and the retooling of their finances (especially at this point). it almost sounds like they are trying to break even, regardless if the company survives or not. Even if it survives, I think they might even still sell of the rights to other groups and simply dissappear. Too be honest, it's the programmers we all love and serve, not so much the "master" (Midway as a whole). Once the company splits, regardless of how or why, the programmers will scurry off and join other companies, or start up their own. I'm down with the idea presented in an article wrote on Joystiq....... it was something like, "....if the production and development team of the current MK series leave Midway, they will more then likely start up a seperate company (hopefully with the MK license in tow).

    Hopefully all works out for the best, and although I love reading peoples comments, here are mine on some of yours:

    Pangamaster - Tearo only used the "k" out of place once, was it really worth a comment?? Unless of course you think the MK is spelled "mortal combat"?? THen it would be two, but alas the latter word is spelled with a "K"....for effect I think.

    CombatSoldier - You are not selling yourself very well of being "older" and of that generation. I'm a mere 30 years old, a combat vet too, and would never give someone the time of day for bad mouthing a video game company. Granted I will give time for reading everyones comments, and inspiring myself to write all this dribble (which is what it is, retarded dribble). I'd guess and say you are probably literally 25, did the Iraq/Afgan thing, and find being confrontational a "rush". When you start a post with "I don't care what any of you think...", you're bound to get some "ass-clown" to respond back with something other then your opinion.....giving yourself the justification to call them said ass-clown. But don't get me wrong ..... dRuGGeRnaUt did sound a little "tool-ish", and called you ignorant...... plus I like the use of "ass-clown", never gets old sir.

    dRuGGeRnaUt - If something rocked back in the day, it does not by definition suck today. Blame the people, not the company. It's like tree hugging liberal hippies saying, "we hate the war in Iraq, but support our troops!" It's the liberal tree hugging hippies that screa,. "F all soldiers, currently assigned, since the administration now sucks. It's an odd reference, I'll admit, but the point is there....... you earned the ass-clown hat appointed to you.

    J0nGalt - compton777 wasn't that bad?? He spelled out a sound for emphasis, forgot a puncuation or two, and then used "da" instead of "the"?? Who hasn't enjoyed say "da" instead" of "the". I live for the chances to say "da"...plus my wife is an english major and it pisses her off.

    Ok, I'm done, and my lunch break is technically over. Thank you everyone for allowing me to waste someones time for having to read such a long "comment" in such a skinny column. Later!

  • pilot_riaz

    Posted Apr 20, 2009 12:56 am PT

    Don't worry as companies go under, new companies will form and then there will be new style of fighting games

  • Jedilink109

    Posted Apr 19, 2009 11:26 pm PT

    Ugh. This sucks. All these game companies going under because the economy sucks.

  • Pangamaster

    Posted Apr 19, 2009 8:02 pm PT

    Tearo: you first need to stop replacing ur c's with "k's", u have obviously played waaay too much mortal combat. and besides the gore mk has nothing going for it. saying that it will still be sad to see this company go away.

  • enix165

    Posted Apr 19, 2009 11:33 am PT

    Well, I thought Mortal Kombat was pretty boring anyways, I'm not into gorefests or 2D fighters, and the new Ready 2 Rumble's supposed to be terrible...who's betting on Activision or EA to buy them out? =P

  • tearo

    Posted Apr 19, 2009 11:15 am PT

    CombatSoldier.

    I am a "young" kid that my age is "less of 18" And I still love midway.

    The Mortal Kombat franchise is my favorite game series of all time.
    My older brothers were probably games of your generation so I grew up next to a sega genisis playing MK1 all the way to UMK3.

    MK vs DCU is a great fighting game with great fighting mechanics,I know it's missing the over the top gore and the extra kontent midway supplied us with in MK: DA and MK: D but still.I enjoyed MK vs DCU and I support midway as they have brought Mortal Kombat and other hits like Blitz and involvement in the unreal tournament.

    So yes,there is hope in some young gamers after all

  • J0nGalt

    Posted Apr 19, 2009 8:44 am PT

    Its official. Compton777 raped the english language and then mutilated grammar afterwards just to be thorough.

  • compton777

    Posted Apr 18, 2009 10:51 pm PT

    & ummm but da tna game compared to svr 2009 sucked ass

  • Xzakuter

    Posted Apr 18, 2009 10:34 pm PT

    -I agree with 'combatsoldier'
    Midway is a classic brand and they continue to show that.(from my P.O.V.)

    I'd like to see more Mortal Kombat please.

  • combatsoldier

    Posted Apr 18, 2009 8:06 pm PT

    Listen ass clown. You obviously are a kid that is of the age of 18 or less. So son let me explain something to you. Just because you dont like there games doesnt mean not everyone has to agree with you. See us adults as in people that are over 25 and did things like fight in wars and change your diapers may not see it the way you do. I dont like all midway games but MK Vs. Dc. happened to be my fav. fighting game last year and one of the best in recent years. Just cause you dont like it doesnt mean everyone feels the same way. So shut up and get over yourself kid. Midway is a legend and your just a nobody. Now who is the ignorant one little punk.

  • dRuGGeRnaUt

    Posted Apr 18, 2009 7:39 pm PT

    @combatsoldier: you will blindly buy bad games from them even when you know they are bad because you have played their games for along time?? man you are the definition of ignorant, thank you for supporting game companies that make a living in publishing garbage.
    Midway IN ITS DAY was an amazing developer, but that doesnt mean anything now.
    GET OVER IT

  • combatsoldier

    Posted Apr 18, 2009 4:09 pm PT

    I love midway and dont care what any of you think. For us older gamers known as adults have been playing midway games since the early 80's. It is disgraceful to come on here and see the lack of respect this gen of gamers gives to legends such as midway. they revolutionized the gaming industry from the days when arcades were the only way to game. Fine things change and evolve but never forget where gaming has come from. The roots of gaming are owed to midway. Midway I will always support you in good and bad.

  • Trainz2006_fan

    Posted Apr 17, 2009 10:54 pm PT

    I thought Stranglehold was a pretty good game. Looks like we wont be seeing a sequel.

  • ShadowXStorm

    Posted Apr 17, 2009 3:51 pm PT

    It just gets worse and worse.

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