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 Post subject: Midway Receives Court Approval Of Cash Collateral And...
 Post Posted: Wed Feb 18, 2009 3:08 am 
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Midway has just announced that the court has approved its voluntary filing for reorganization under Chapter 11 of the U.S. Bankruptcy Code. From the press release:

MIDWAY RECEIVES COURT APPROVAL OF CASH COLLATERAL AND OTHER FIRST DAY MOTIONS

Court Authorizes Company to Utilize Cash, Continue Salary and Other Employee Benefits, Pay Pre-Petition Claims to Critical Vendors, Pay for Post-Petition Goods and Services

CHICAGO – February 16, 2009 – Midway Games Inc. (NYSE: MWY) today announced it has received approval from the U.S. Bankruptcy Court for the District of Delaware of its cash collateral and other first day motions, which were submitted as part of its February 12, 2009, voluntary filing for reorganization under Chapter 11 of the U.S. Bankruptcy Code.

As previously announced, the filing includes Midway's U.S. operations, but does not include the company's non-U.S.-operations, which will continue business as normal.

In approving the motions, the court authorized Midway, among other things, to utilize its cash to maintain ongoing operations pending a final hearing; to continue salary and expense-reimbursement payments and other benefits to employees; to honor and perform obligations under its customer programs, such as price protection and Market Development Funds (MDF) programs, regardless of whether these obligations arose before or after the Chapter 11 filing; and to pay certain pre-petition trade claims held by critical vendors. Midway has received court approval to continue using its existing cash-management system and its pre-petition bank accounts and check stock. In addition, the company is authorized under the Bankruptcy Code to pay vendors and suppliers in the ordinary course for post-petition goods and services.

"Approval of these motions is an important first step in this planned and orderly reorganization, 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."

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