Midway Games, who have had some well documented financial problems in the last several months, has now hired what is essentially a last chance company, Lazard Ltd. (who hopefully have the same affect as a Lazarus Pit), to try to help them get out of their latest problem. The company, which was just sold off for $100,000 and a whole bunch of debt, is now being told it’s about to default on $240 MILLION in loans. The Chicago Tribune, covering its hometown company, has more:
According to the regulatory filing, the change in ownership triggers provisions in two series of Midway bonds that allow bondholders to ask for full repayment. Midway said it expects all of its bondholders to request this option. This would require Midway to pay out $150 million, an amount that the company said it would not be able to furnish based on its current liquidity.
So, essentially, the sale of the company that some looked to as hope for a change and a ressurection is actually what’s queued up this latest problem. What’s more perplexing is later in the article, where the Trib notes that Mark Thomas, the private investor who made the purchase, has gone on record as wanting no management control in the company. Why exactly do you buy a seeming sinking ship if not to personally plug the holes?
April 7th, 2011 at 2:01 am
Appreciate your taking this opportunity to discuss this, I am strongly over it and I take advantage of learning about this subject. When possible, while you gain data, please update this web site with new information. I have discovered it extremely useful.