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Midway Delisted From New York Stock Exchange

Midway Delisted From New York Stock Exchange

February 19, 2009 | By Leigh Alexander

February 19, 2009 | By Leigh Alexander
More: Console/PC

Embattled publisher Midway has been delisted from the New York Stock exchange. Faced with Chapter 11 restructuring and looming debts, the publisher's share value fell below acceptable trading levels.

In order to be listed on the New York Stock Exchange, every company must maintain a minimum average closing price of $1.00 per share over 30 consecutive trading days, but the Mortal Kombat publisher's recent, highly public struggles have made compliance with this rule an impossibility -- while simultaneously its restructuring status no longer allows its stock to be backed by capital.

The company was warned of imminent delisting back in November 2008 - though its shares are continuing to be traded outside of the NYSE, changing hands at 11 cents each as of press time.

Midway filed for Chapter 11 to alleviate pressure from creditors -- bond owners to which it owes $150 million after the departure of former majority stakeholder Sumner Redstone triggered a buyback obligation. To make matters worse, the publisher's debts compound to $240 million in the face of its inability to fulfill the obligation.

The bondholders to which Midway owes the payout have also raised complaints about secretive investor Mark Thomas, who as the buyer of Redstone's stake stands to gain the largest share of the money. Their questions surround Thomas' relationship with Redstone and the circumstances under which he purchased the 87 percent share.

Most recently, the company received court permission to use its cash reserves to continue operating, paying its staffers, retailers and suppliers. It withdrew from the Entertainment Software Association, presumably unable to devote resources to its membership fees.

Wheelman, Midway's upcoming cross-platform action title starring actor Vin Diesel, will still be published through a strategic partnership with Ubisoft that allows Midway to retain both future franchise rights and the ability to sell the game in some European territories, where it continues operations as normal.

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