Midway Games gets extension for liquidation plan

Midway Games Inc., the creator of "Mortal Kombat" and other video games, was given an extension of the exclusive right to propose a liquidating plan.

The new deadline is Sept. 29. Midway was authorized this month to sell its non-bankrupt European subsidiaries for nominal consideration to buyers who took over the companies subject to their debts.

In July, Midway sold most of the assets for $33 million plus accounts receivable to a subsidiary of New York-based Time Warner Inc. Chicago-based Midway entered Chapter 11 in February, listing assets of $168 million and debt of $281 million.

Including foreign subsidiaries not in bankruptcy, the asset and liability totals are $178 million and $337 million. Midway's debt includes $150 million in convertible notes, $29 million on a secured term loan and revolving credit, $40 million on a secured loan facility and $20 million on a subordinated loan.

Unsecured claims by suppliers total $96 million, the company said in a court filing.

The case is In re Midway Games Inc., 09-10465, U.S. Bankruptcy Court, District of Delaware (Wilmington).