Midway Games first-day motions, cash collateral use approved

By Caroline Salls

Pittsburgh, Feb. 17 - Midway Games Inc. has received approval from the U.S. Bankruptcy Court for the District of Delaware of its cash collateral use and other first-day motions, according to a company news release.

"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," chairman and chief executive officer Matt Booty said in the release.

"We remain confident in Midway's ability to use this proven process to address our capital structure and explore our strategic alternatives."

Among the first-day motions, Midway received court approval to use its cash to maintain ongoing operations on an interim basis; to continue salary and expense-reimbursement payments and other benefits to employees; to honor its customer programs, including price protection and Market Development Funds programs; and to pay some pre-bankruptcy trade claims held by critical vendors.

In addition, Midway said it has received court approval to continue using its existing cash-management system and its pre-bankruptcy bank accounts and check stock, as well as to pay vendors and suppliers in the ordinary course for post-bankruptcy goods and services.

Midway Games, based in Chicago, is a developer and publisher of interactive entertainment software for videogame systems and personal computers. The company filed for bankruptcy on Feb. 12, and its Chapter 11 case number is 09-10465.

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