Midway has received authorization from the U.S. Bankruptcy Court to use its remaining cash collateral to "maintain ongoing operations" before a final hearing.
The
This Is Vegas publisher intends to use its remaining reserves to pay salaries, expenses and other benefits to employees. Midway will also now be able to pay retailers and suppliers, as well as other normal customer programs.
Since the Chapter 11 bankruptcy protection only applies to Midway’s U.S. businesses, its international operations will continue to operate as normal.
Midway
filed for protection earlier in the month as debts of $150 million loomed and threatened to mount further, following media mogul Sumner Redstone’s sale of his controlling stake in the company.
"Approval of these motions is an important first step in this planned and orderly reorganization, enabling Midway to continue to operate as usual during this process," said chairman and CEO Matt Booty. "We remain confident in Midway’s ability to use this proven process to address our capital structure and explore our strategic alternatives."
In related news, Midway appears to have withdrawn from the ESA (Entertainment Software Association). Website GamePolitics was the first to notice the company’s
absence from the ESA website.
The move is likely a further cost cutting exercise, but implies Midway may not be present at this year’s revitalized E3 trade show, which the ESA organizes.
