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Midway Games Gets A Few More Weeks To Pay Off Debt

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Midway Games has finagled a bit more time to settle its roughly $150 million in debt, but it’s hard to see how that would materially change matters for the troubled game publisher. Under a new forbearance agreement contained in this SEC filing, the company now has until Feb. 19 to pay back 7.125 percent of its convertible notes. (Via SAI.)

As of Oct. 31, Midway had only about $10 million in cash and in December it cut 25 percent of its staff, closed its Austin studio and suspended development on non-core games. Two weeks prior to that, Sumner Redstone sold National Amusement’s 87 percent stake to investor Mark Thomas for a paltry $100,000 in cash.

One Response to “Midway Games Gets A Few More Weeks To Pay Off Debt”

  1. David Holmes

    There is an error/typo in this summary.

    Midway has until February 19, 2009 to pay back $75 million of 7.125% (the interest rate) convertible notes, versus 7.125% of its convertible notes.

    It is also attempting to reach a similar agreement with the holders of the other $75 million worth of convertible notes, which have a different interest rate.