Midway Games has petitioned for Chapter 11 bankruptcy, which means the publisher can keep operating if the US courts agree they stand a chance.
Midway’s Matt Booty says it was ”a difficult but necessary decision.” It seems part of the plan is to hand off Vin Diesel’s Wheelman to rival Ubisoft, with retail listings in agreement.
The financial situation has finally caught up with the publisher and Midway can no longer hold back its creditors without some help from the US courts. Chapter 11 does not mean the company will liquefy assets, that would be Chapter 7.
”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,” said the Chairman, CEO and President of Midway Games, Matt Booty.
”Midway enters this process with strong underlying fundamentals, as evidenced by solid fourth quarter sales that exceeded expectations in spite of a challenging retail and general economic environment,” Booty added.
”Overall, Mortal Kombat vs. DC Universe sales are approaching two million units shipped, TNA iMPACT! has shipped approximately one million units, and our Game Party franchise has sold close to three million units in total.”
The publisher offered ”no comment” when asked by Kotaku if they’ve handed over Wheelman to Ubisoft, and there has been no word from them either yet.
Wheelman was expected to release for Xbox 360, PS3 and PC this March 16th but it’s likely to face delays with a change of publisher venue.
Source: VG247
