Midway haemorrhaging cash at an alarming rate

Midway owner Mark Thomas,

who bought the publisher for $100,000 last December

, has admitted that Midway’s cash reserves are rapidly depleting.

In a filing unearthed by GamePolitics, Thomas states: Midway has an immediate need to access and use AHS’s Cash Collateral [another company owned by Thomas]. Nor can it be disputed that, based upon the Debtors’ 13-week forecasted budget, Midway is haemorrhaging cash at an alarming rate.

Indeed, the Midway budget indicates that between February 9th 2009 and May 4th 2009, Midway will burn through approximately $12,392,598 in cash representing an approximately 75 per cent depletion of its cash reserves.”

Generating cash is a tough task for any company in today’s market – lending all the more weight to the belief that Midway might sell off its Mortal Kombat franchise, though questions would be asked about the position this would leave the company in.