Midway Bankrupt With $240 Million Debt

Midway made official what many had been suspecting by filing for Chapter 11 bankruptcy in US Federal Court. The petition was filed in the state of Delaware. According to those documents, the company owes more than $150,000,000 in loans to Wells Fargo Bank, the top creditor on a long list. All together, the company owes $240 million in debt, which is more than the $167 million in claims in assets.

"This was a difficult but necessary decision," Midway CEO Matt Booty said in a statement. "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."

The company had been in trouble over the last year. In December it announced that it would need to layoff 25 percent of its workers. Before that, Sumner Redstone, one of the main owners, sold off his 87 percent stake in the company, which was valued at $30 million, for $100,000.

According to the Chapter 11 documents, Midway's creditors include:

Wells Fargo Bank – $150,000,000

Acquisition Holdings Subsidiary – $40,000,000

National Amusements, Inc. – $20,147,864

NBA Properties, Inc. – $17,294,849

Tangible Media, Inc. – $8,675,954

Warner Bros. Interactive – $6,654,203

Artificial Mind & Movement – $2,000,000

Epic Games – $1,975,000

Walmart – $1,576,035

Far Sight Technologies – $1,279,151

Best Buy – $1,114,036

Target – $934,156

Technicolor Video Services – $637,769

Toys R Us – $615,276

Ditan/Synergex Canada – $578,316

CBS Outernet – $314,600

David Zucker – $300,000

Multi Packaging Solutions – $287,036

A.A.F.E.S Headquarters – $276,314

Kmart – $218,497

Tigon Studios – $200,000

Hollywood Entertainment – $190,982

TNA Entertainment – $160,000

Professional Films, Inc. – $150,000

Synergex – Latin America – $149,027

Pioneer.JB Marketing – $133,353

Eclipse Advertising – $132,687

GameStop – $127,250

and Sears, Roebuck – $125,495.

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