Due to changes in majority ownership, Midway may have to pay 150 million dollars to its bondholders.
Earlier this week, Sumner Redstone sold his majority share in Midway to private entrepreneur Mark Thomas for $100,000, as well as the transfer of $70 million in debt. This change in ownership has triggered a provision that allows Midway bondholders to seek to have their bonds bought back in full. If all Midway bondholders decide to seek this option - and Midway believes they will - it'll mean the publisher will have to pay back a total of $150 million.
To make matters worse, failing to pay the bondholders' debt will allow National Amusements to declare a 90 million loan they gave to Midway to be "immediately due and payable," bringing Midway's debt to $240 million.
Midway has only 50 days to pay the bondholders' $150, or file for bankruptcy. The company doesn't have this kind of money right now, but they hired investment adviser Lazard Ltd. to seek "strategic and financial alternatives."
