Struggling game developer Midway has filed for Chapter 11 bankruptcy protection in the US. ShackNews writes the maker of the Mortal Kombat series is unable to repay its $150 million debt potentially due next week:
The filing does not affect its non-U.S. operations, which will continue "as normal."
The company plans to reorganize but "conduct its business operations as usual," with CEO Matt Booty noting that "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."
"This filing will relieve the immediate pressure from our creditors and provide us time for an orderly exploration of our strategic alternatives," he explained.