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.