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Midway wants control of Chapter 11 liquidation
Bloomberg News
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Published: 12/29/2009 9:09 AM

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Midway Games Inc., the creator of "Mortal Kombat" and other video games, for a fifth time is requesting an extension of the exclusive right to propose a liquidating Chapter 11 plan.

Midway says it's in the process of exchanging drafts of the plan and disclosure statement with the creditors' committee. If granted by the court at a Jan. 26 hearing, so-called exclusivity would be pushed out to Jan. 25.

Midway also wants the exclusive right until March 30 to solicit acceptances of a plan.

Midway sold the assets, generated $43 million cash, and left no substantial secured claims unpaid. Most of the assets were sold in July for $33 million plus accounts receivable to a subsidiary of New York-based Time Warner Inc. The non-bankrupt European subsidiaries were sold in August for nominal consideration.

Chicago-based Midway filed under Chapter 11 in February, listing assets of $168 million and debt of $281 million. Including foreign subsidiaries not in bankruptcy, the asset and liability totals are $178 million and $337 million.

Midway's debt originally included $150 million in convertible notes, $29 million on a secured term loan and revolving credit, $40 million on a secured loan facility and $20 million on a subordinated loan. Unsecured claims by suppliers totaled $96 million, the company said in a court filing.

The case is In re Midway Games Inc., 09-10465, U.S. Bankruptcy Court, District of Delaware (Wilmington).