Midway secures access to cash for operations
But publisher reportedly withdraws from ESA as reorganisation under bankruptcy continues
Midway has announced it has received approval from the US Bankruptcy Court to use its cash collateral, handed over when it filed for reorganisation under Chapter 11, to fund ongoing operations.
Following filing for Chapter 11, which only effects Midway's US operations, the court authorised the publisher to use its cash to maintain ongoing operations pending a final hearing. Midway will use the money to continue salary payments and employee benefits, customer programs, and other day-to-day operating expenses.
"Approval of these motions is an important first step in this planned and orderly reorganisation, enabling Midway to continue to operate as usual during this process," said Matt Booty, chairman and CEO. "We remain confident in Midway's ability to use this proven process to address our capital structure and explore our strategic alternatives."
It also appears that Midway has withdrawn from the Entertainment Software Association, the US publishers' organisation, according to GamePolitics.
At the time of writing, the faltering publisher is no longer listed as a member on the ESA website. The organisation saw a number of defections last year, with its members dropping from 28 to 20, with this latest desertion.