Midway Games and its US subsidiaries have filed petitions for reorganization under Chapter 11 of the US Bankruptcy Code. European operations unaffected and to continue business as normal.
It's all a bit technical when it already feels like it should be Friday, but the Chapter 11 protection may enable the publisher to continue its business operations as usual if the Bankruptcy Court approves a number of First Day Motions which are regularly granted, according to Centredaily.com.
Either way, it's clearly bad news for Midway, although it's been on the cards for a while now.
The filing does not include the company's non-US arms, which will continue operating as normal.
"This was a difficult but necessary decision," said Midway CEO Matt Booty. "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."
"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," he added.
"Overall, Mortal Kombat vs. DC Universe sales are approaching two million units shipped, TNA iMPACT! has shipped approximately one million units, and our Game Party franchise has sold close to three million units in total."