Midway: Still kicking, for now

Chicago-based publisher Midway has managed to talk its way out of defaulting on $150 million in debt, avoiding a quick death.

The crisis occurred when Sumner Redstone sold his 87% controlling stake in the company for $100,000 to Mark Thomas. This triggered a provision allowing bondholders to request payment of all debts within 50 days.

According to a press release issued today, the troubled game publisher has negotiated with creditors to extend the deadline to Feb. 12, 2009.

In effect, Midway bought itself another month of survival. This is really another month to sell the Mortal Kombat IP and liquidate other assets.

From my (investment-ignorant) viewpoint, it seems like Midway is still doomed, but may have a chance to pay off some of its debts before the ship goes down.

Read: Midway Reaches Waiver and Forbearance Agreement on All Convertible Senior Notes