February 15th, 2009 by Arjan Olsder Posted in Companies & M&A | No Comments »
Though Midway had just been sold a few months back and recently announced their iPhone games, the (mobile) games publisher has filed for Chapter 11 Bankruptcy Protection late last week.
The troubles for the company have started after the sale was announced. At the sale, creditors had the option to cancel their loans to the publisher. As the financial climate is rough, the new owner hadn't been able to find new investors fast enough to fill the gap.
By filing for bankruptcy protection, the company has now got some time to collect the money needed. If the company goes bankrupt, there is no money in it for investors anyway.
