Midway buys more time on debt collection
Remaining convertible senior notes now extended for a month
Midway has announced that it has managed to negotiate some more room to manoeuvre on the remaining 6 per cent of its convertible senior notes, which suddenly became due when Sumner Redstone sold the publisher for USD 100,000 late last year.
Around USD 150 million of notes had to be potentially repaid without warning, but the publisher has negotiated with the note holders to change the date from which they can exercise their options to February 12, 2009, giving the company an extra month to work out a long term agreement.
Last week the company announced that the preceding 7 per cent of notes had been given extended time, and that it expected this further 6 per cent to follow.
Midway's situation won't be helped by the economic climate, which has made it exceptionally difficult for any company to obtain significant credit lines, as banks and other lending institutions draw back.
The notes had previously been due in 2025 and 2026.