Midway Faces Reorganization or Selling Mortal Kombat

Given the current situation of Midway and its struggle to stay afloat as a company has resulted in proposing monetary incentives for its top employees in order to stay with the company to keep it alive.

Legal website netDockets has outlined Midway’s key employee incentive plan for a “group of 29 eligible employees as “officers, management-level employees and other non-insider key employees.”

1. Milestone: Entry into a publishing/distribution agreement for Midway’s new “Wheelman” game (apparently already accomplished), performance by Midway entitling it to gross proceeds of $6 million under the agreement by March 1, 2009, and actual receipt of those proceeds. Bonus Amount: $497,500.

2. Milestone: Either (i) execution of an asset purchase agreement for the sale of Midway’s Mortal Kombat franchise assets or (ii) submission by Midway of a plan of reorganization to continue as a going concern. Bonus Amount: $1,292,500.

3. Milestone: The earlier to occur of (i) confirmation of a plan of reorganization or liquidation or (ii) closing of a sale of Midway’s Mortal Kombat franchise assets. Bonus Amount: $1,965,000.

The first milestone having already been completed with Vin Diesel’s Wheelman to be published with the help of Ubisoft but the other two remarks a very interesting situation. It proposes that the company it either sells one of its key intellectual properties, Mortal Kombat, or reorganize as an entity.

Kotaku has brought up rumors and speculation that Midway is making attempts to incentivize its key employees while former employees still haven’t recieved their severence pay. But given the drastic situation of the company and the need for those employees to stay with company in order to keep it afloat may be of more larger concern and focus for the fate of Midway as an entity. This take might be slightly exaggerated and sensational.

Midway has publically come out and stated that:

But Geoff Mogilner, Midway’s head of investor relations said in a phone interview, “We’re not going out of our way to sell Mortal Kombat.” He said Midway may keep its properties instead of selling them off in pieces. “That’s management’s goal, to keep the company together.”

– Edge

So who knows, if Mortal Kombat does get sold, who would most likely be capable to take over the franchise if the original Mortal Kombat team does not get the ability to work on it again?

Thanks Giant Bomb