When Mark Thomas bought Midway for $100,000, it seemed like a good deal -- even if he did get their $70 million in debt in his welcome basket. Soon after, though, we learned that the sale triggered provisions in Midway's bonds, which allowed shareholders to ask for their full $150 million back. A few other clauses later, and Midway's sale basically meant they would end up having to repay a total of $240 million.
The good news? Midway has reached an agreement with half of their holders ($75 million's worth) to put off asking for a repayment until February 19, a few weeks past the original January 26 deadline. The bad news? The other half of their debt holders still hasn't reached a similar agreement, although it’s probably not due to lack of trying on Midway's part.
If Midway can't convince the other half to delay their requests, that would mean Midway has to pay them $75 million by January 26. If they can't, then the amount they owe will increase $45 million, give or take.
I don't know what Midway has in store, but my guess is that the delay is more of a "gives us time to think or escape to South America" tactic. Their next big game, "Vin Diesel's Wheelman", isn’t due out until February 20 -- one day past the extended deadline. Barring an insane record breaking amount of pre-orders....
So if anyone out there is looking to buy the rights to a franchise -- say, "Mortal Kombat" -- you may want to check eBay every few days.
Alternatively, if you know how to turn lead into gold or grow a money tree, give Mark Thomas a call.
January 7th, 2009 at 2:39 pm
Do they even have any IPs other htan Mortal Kombat that anyone would WANT to buy?