Midway Games on Thursday announced that it has filed for Chapter 11 bankruptcy protection.
In a statement, Midway CEO Matt Booty said the filing is a “difficult but necessary decision,” and that it is “the next logical step in an ongoing process to address our capital structure.”
Mr. Booty expressed optimism for the company, pointing to better-than-expected sales of TNA Impact!, Mortal Kombat vs. DC Universe, and Game Party with 1 million, 2 million, and 3 million units shipped, respectively.
The Chapter 11 protection should allow the company to go about its normal business. Midway’s non-US operations are not affected.
Midway shares dropped $0.09, or 36 percent, at $0.16.