Midway has received approval from the US Bankruptcy Court to use its cash collateral so it can continue to operate as usual.
Midway asked the bankruptcy court for protection from its creditors last week, although the publisher’s non-US operations remain unaffected.
The approval allows the firm to honour obligations such as certain pre-petition trade claims held by critical vendors, as well as continue the salary and expense payments to its employees. The firm may also pay suppliers and vendors 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 Midway CEO Matt Booty.
We remain confident in Midway’s ability to use this proven process to address our capital structure and explore our strategic alternatives.”