Poor Midway. If it's not one thing, it's another. The latest news to come out of the beleaguered firm's bankruptcy proceedings suggest that the company will be completely out of cash by June.
That grim revelation is contained in a statement issued to the courts by Midway owner Mark Thomas last week:
Moreover, the Debtors have conceded that if they continue consuming the cash at the current rate, the Debtors' cash will be depleted by late June 2009...Furthermore, the Debtors do not have any new, major video game releases which could have provided an influx in cash between now and June 2009.
Also contained in the document, despite the heavy use of REDACTIONS, is a suggestion Midway have "overstated the value of Mortal Kombat", and that Citigroup were hired last year to look for someone who could buy the troubled company. Their findings? "Citi failed to find interested investors."
On a "brighter" note, Midway themselves claim that those documents are based on previous projections of the company's cash reserves, and that as of today, they feel there's enough cash to last until August, not June as the court records claim.
Court Document: Midway Will Run Out of Cash in June [GamePolitics]