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Hoping to rustle up some cash flow to finance inventory and manufacturing for its Fall lineup, Midway will sell some of its accounts receivable to National Amusements Inc (NAI), opening the door for a possible $40 million in aid from the company directed

Leigh Alexander, Contributor

September 19, 2008

1 Min Read

Hoping to rustle up some cash flow to fund inventory and manufacturing for its Fall lineup, Midway will sell some of its accounts receivable to National Amusements Inc (NAI). NAI is directed by Shari Redstone, who is also Midway's Board chair. The factoring agreement lets Midway sell up to $40 million in accounts receivable to NAI, to offset the cost of manufacturing its 2008 titles TNA Impact, Blitz: The League II, and Mortal Kombat vs. DC Universe. Midway interim CEO Matt Booty said the agreement "underscores both our confidence in our franchises as well as the benefit of our relationship with National Amusements." In its second fiscal quarter, Midway reported a $34.8 million net loss, more than doubling its losses year over year. It also saw a 26 percent drop in revenue year-over-year to $23.4 million. The company expects things to turn around when they report their third fiscal quarter results at this month's end, projecting a revenue increase to $52 million. Said Redstone, "With the additional resources provided through this agreement, I believe Midway will be well positioned to capitalize on the release of these highly anticipated products and lay the foundation for the growth of these franchises."

About the Author(s)

Leigh Alexander

Contributor

Leigh Alexander is Editor At Large for Gamasutra and the site's former News Director. Her work has appeared in the Los Angeles Times, Variety, Slate, Paste, Kill Screen, GamePro and numerous other publications. She also blogs regularly about gaming and internet culture at her Sexy Videogameland site. [NOTE: Edited 10/02/2014, this feature-linked bio was outdated.]

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