It's a sad state of affairs when the gaming community ceases to be surprised by once-strong developers/publishers sinking into the dark depths of liquidation. Midway Games has been fighting to stay afloat for quite a while now. Initially they had to borrow money to finish and release Mortal Kombat vs DC Universe, and then the company's controlling stake was sold for a mere $100,000, when at last the word came through that the sands of time had started counting against them.
While the latest news is far from stating that Midway have steered clear of shit-creek, they have managed to give themselves a bit of breathing room. The sale of Midway Games in December saw the triggering of a provision that would allow for the company's creditors to call in money owed, dozens of years before the agreed repayment date. According to this article over at Business Week, Midway has managed to negotiate an extension for a holder of $75 million worth of convertible senior notes until the 19th of February. Midway is also currently in negotiations with other holders of convertible notes in the hopes of a similar extension.
While the extension is good news for Midway Games as it provides them with some much needed breathing space, it does beg the question as to how they plan on coming up with the large sums of money required to clear their debt. Either a lot of piggy banks will be cracked open or some more drastic measures may have to be taken. We're wondering what sort of price tag could be placed upon a successful intellectual property and whether they'd be willing to part with the likes of a Mortal Kombat franchise.