Midway Secures More Breathing Room
Chicago-based Midway has struck a deal with noteholders who agreed to extend their right to demand that the company buy back notes.
The creditors, who hold $75 million in Midway bonds, agreed to push back the date for the repurchase requirement to February 19, 2009.
Midway is in talks to reach a similar accord with other creditors who hold an additional $75 million in notes.
When Midway majority shareholder Sumner Redstone sold his 87.2 percent stake in the Mortal Kombat maker to a private investor in November last year, the move triggered a change of control provision that gave holders the imminent option to demand all of their money back.
Midway said in December that if holders exercised the option to demand back the total of $150 million in notes, the company would not have the liquidity to repurchase the bonds.