Offers incentives if company sold for that
Last modified on Thursday, 16 April 2009 08:05
The news regarding Midway just continues to go from bad to worse, with continuing bad press over the current state of affairs with the publisher. According to various reports, Midway is offering its key employees incentives if the company asset sale is able to equal at least $30 million in total.
This is only the first phase of what is being called the KEIP or key employee incentive plan. The second part of the plan tasks these key employees to come up with a court acceptable plan to reorganize, or in the event that this is not possible, to actually liquidate Midway to satisfy the number of secured claims.
The latest plan offers incentives that are much less than what was proposed originally. As the days pass it seems less and less likely that Midway will reorganize in a way that will allow the company to remain intact. It is most likely at this point that more assets will continue to be sold off and the company will be forced into liquidation, unless an actual buyout purchase is completed quickly.
The rumors continue that at least two buyers remain seriously interested in Midway, with a third that has at least some interest in the company. With our sources saying that Midway is running out of cash, it is likely that the entire final fate of the company will be known in the next sixty-day period.