Earlier this month Midway majority shareholder Sumner Redstone sold off his controlling stake of 87% in the company for a paltry $100,000. Not only did the move unsurprisingly sent the companys stock prices down to its current of 23 cents per share, but the change in control also triggered a provision that allows Midways creditors to demand immediate repayment of debt.
Given Midways poor financial state theyre expected to so, with the debt amounting to more than $150 million, and it looks like the company won't be able to meet the request. According to Variety, Midway has 50 days to come up with the money which seems highly unlikely no matter how well their Mortal Kombat vs. DC Universe title sells (and apparently it is selling pretty well). In other words, should their creditors decide not to play ball, Midway could be bankrupt before the end of January 2009.