Midway Games Inc. (NYSE: MWY) today announced that it has entered into a factoring agreement with National Amusements, Inc., to offset the cost of manufacturing its robust fall 2008 games lineup, which includes TNA iMPACT!, Blitz: The League II and Mortal Kombat vs. DC Universe.
“We believe we have a very strong lineup for the fall, and this agreement underscores both our confidence in our franchises as well as the benefit of our relationship with National Amusements,” said Matt Booty, interim CEO and president. “Our focus at Midway continues to be execution on key fronts – sales, marketing, and product development – that we believe will drive our business success.”
Shari Redstone, Chair of the Board, commented, “Midway’s lineup for this holiday season represents an important launchpad for the company to regain market leadership. With the additional resources provided through this agreement, I believe Midway will be well positioned to capitalize on the release of these highly anticipated products and lay the foundation for the growth of these franchises.”
Under the terms of the agreement, National Amusements will purchase accounts receivable up to a maximum of $40 million, providing Midway with additional cash flow flexibility for manufacturing. Additional information relating to the agreement can be found on Form 8-K filed with the Securities and Exchange Commission and available at Midway’s website at investor.midway.com.