Midway has some debt to pay off, but the catch 22 about debt is that you have to spend money in order to make money in order to pay said debt off. However, creditors don’t usually want to here this as they’re much more about getting their money as soon as possible. Luckily, when a company declares bankruptcy and files for Chapter 11 protection the US government steps in and regulates things. Such is the case with Midway who has been given permission to spend money in order to develop whatever they’re working on (Wheelman) and continue to pay staff.
The US court system is so nice some times. Midway seems to agree, with Matt Booty (immature snicker), Chairman and CEO of Midway saying, “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. We remain confident in Midway’s ability to use this proven process to address our capital structure and explore our strategic alternatives.” And we remain confident that part of this money is going towards another Mortal Kombat game, because we’re pretty sure that’s where Midway’s money is.
