Full Press Release is as follows:
MIDWAY RECEIVES COURT APPROVAL OF CASH COLLATERAL AND OTHER FIRST DAY MOTIONS
Court Authorizes Company to Utilize Cash, Continue Salary and Other Employee Benefits, Pay Pre-Petition Claims to Critical Vendors, Pay for Post-Petition Goods and Services
CHICAGO – February 16, 2009 – Midway Games Inc. (NYSE: MWY) today announced it has received approval from the U.S. Bankruptcy Court for the District of Delaware of its cash collateral and other first day motions, which were submitted as part of its February 12, 2009, voluntary filing for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
As previously announced, the filing includes Midway's U.S. operations, but does not include the company's non-U.S.-operations, which will continue business as normal.
In approving the motions, the court authorized Midway, among other things, to utilize its cash to maintain ongoing operations pending a final hearing; to continue salary and expense-reimbursement payments and other benefits to employees; to honor and perform obligations under its customer programs, such as price protection and Market Development Funds (MDF) programs, regardless of whether these obligations arose before or after the Chapter 11 filing; and to pay certain pre-petition trade claims held by critical vendors. Midway has received court approval to continue using its existing cash-management system and its pre-petition bank accounts and check stock. In addition, the company is authorized under the Bankruptcy Code to pay vendors and suppliers in the ordinary course for post-petition goods and services.
"Approval of these motions is an important first step in this planned and orderly reorganization, enabling Midway to continue to operate as usual during this process," said Matt Booty, Chairman and CEO. "We remain confident in Midway's ability to use this proven process to address our capital structure and explore our strategic alternatives."
About Midway
Midway Games Inc. (NYSE:MWY), headquartered in Chicago, Illinois, with offices throughout the world, is a leading developer and publisher of interactive entertainment software for major videogame systems and personal computers. More information about Midway and its products can be found at
www.midway.com.
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 concerning future business conditions and the outlook for Midway Games Inc. (the "Company") based on currently available information that involves risks and uncertainties. These forward-looking statements include, without limitation, statements regarding the Company's expectations concerning the bankruptcy process, the continuation of day-to-day operations and payments to vendors and employees in the ordinary course. The Company's actual results could differ materially from those anticipated in the forward-looking statements as a result of these risks and uncertainties, including, without limitation, (1) the impact of today's announcement on the Company's operations; (2) the ability of the Company to continue as a going concern; (3) the ability of the Company to obtain approval of and operate pursuant to the agreement with its secured creditor for the use of its cash collateral; (4) the ability of the Company to obtain court approval of the Company's first day papers and other motions in the Chapter 11 proceeding pursued by it from time to time; (5) the ability of the Company to develop, pursue, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 cases; (6) risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the Company to propose and confirm one or more plans of reorganization, or the appointment of a Chapter 11 trustee or to convert the cases to Chapter 7 cases; (7) the ability of the Company to obtain and maintain normal terms with vendors and service providers; (8) the ability of the Company to maintain contracts that are critical to its operations; (9) potential adverse developments with respect to the Company's liquidity or results of operations; (10) the ability of the Company to fund and execute its business plan; (11) the ability of the Company to retain and compensate key executives and other key employees; (12) the ability of the Company to attract and retain customers; and (13) any further deterioration in the macroeconomic environment or consumer confidence. Discussion of additional factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations is set forth under "Item 1. Business - Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2007, and in more recent filings made by the Company with the Securities and Exchange Commission. Each forward-looking statement, including, without limitation, financial guidance, speaks only as of the date on which it is made, and Midway undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances, except as required by law.
