Midway games filed for Chapter 11 bankruptcy on Feb 12th. Read the press release here. Now normally that would be nothing to shake a stick at, with the economy in trouble like it is, but there is something wrong with a “mysterious” person buying the company for $100,000 and I am guessing assuming the remaining debt of the company.
Now in 2009, it seems that Midway’s creditors are seeking an injunction on the company alleging shady dealing on the sale. This is going to leave Midway’s creditors high and dry for about $150M of outstanding debt. This does not seem right to me. How can a company president, loan the company money from holding companies that he has control of, and then sell off that debt to someone else? Something is rotten in the state of Denmark, and it is not the fish…
It just goes to show you that if you have enough money and influence, you can bend the rules to suit you and to hell with the consequences, because you are rich enough and powerful enough to get away with it. The “mysterious” buyer is named Mark Thomas and his secured loan when he bought the company gets paid first under the bankruptcy laws. Which will ultimately leave the others out of luck.
Let’s investigate this folks, we need to protect the gaming industry from predators like this.
