Midway was stung on the New York Stock Exchange yesterday after the firm’s stock lost 12% of its market value, hitting a 52-week-low of 79 cents/share.
Sumner Redstone, the majority-owner of Midway Games’ parent company National Amusements, is said to be “wrapped up in talks with his creditors”, Forbes reports.
Earlier this month, National Amusements sold around $400m of its shares to cut the company’s borrowings, and the holding company said last week that it was in talks with bankers to assess the terms of its $1.6 billion debt.
Last Thursday, Midway saw a number of its game licences terminated due to the company’s struggling financial situation. Back in March the then-ceo of Midway, David Zucker, resigned following four years of dwindling financial performance. The company is said to have lost an estimated $580m since 1999.