Midway's $1.6 billion of debt has a few more days to stew and grow after its investors agreed to hold until February 19th before, you know, going crazy and throwing their stocks out the window, or whatever. Purchased for $100,000 (or -1.59 billion) by a private source, the company has been in dire straits after Mortal Kombat vs DC Universe didn't sell umpteen million copies, or however many it would have sold to earn them over a billion dollars.

Here's the press release:

Midway Games - CHICAGO

Video game publisher Midway Games Inc. said it reached a waiver and forbearance agreement with some of its note holders. Late Monday, Midway, best known for its "Mortal Kombat" video game series, said holders of its $75 million convertible senior notes due 2026 agreed to extend their right to make the company buy back the notes until Feb. 19. Midway said it is also in talks with holders of convertible notes due 2025 to try to work out a similar agreement. Midway disclosed in a government filing in December that it will cut 180 jobs, or 25 percent of its work force, close a studio in Austin, Texas, and halt development of "noncore" games. Media mogul Sumner Redstone sold his majority stake in Midway last month as his family's holding company looks to get out from under $1.6 billion of debt. A month earlier, Redstone's daughter, Shari, resigned as Midway's chairman so she could focus on her responsibilities with National Amusements Inc.

I'm really not sure what all of that means, but I assume it's good news for Midway, bad news for whoever they owe money, and questionable news for any IPs they own that anyone might want to see sequels to in the near future. Be sure to come back on February 20th when there is a follow up to this story, where we talk about how confused we are by that press release.

[Source]

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