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Midway Line of Credit -Filing Terminated
Midway Games Inc. failed to comply with a covenant of its credit line by the end of the second quarter, resulting in the line being terminated, the video game publisher said in a federal filing on Thursday. In a quarterly report filed with the U.S. Securities and Exchange Commission, Midway said it was not in compliance with a requirement related to its minimum stockholders' equity and net worth as of June 30, due to a $23.05 million write-down of capitalized product development costs.
"We have negotiated continued availability under the letter of credit facility through December 15, 2003 and terminated the line of credit facility," Midway said. "We are actively exploring other financing alternatives." Midway said the letter of credit facility has a maximum availability of $15 million, and that it had outstanding letters of credit of $300,000 at June 30. The company also said it received a payment of $4 million on Aug. 12 from its former parent, WMS Industries Inc., relating to tax sharing and separation agreements.
SOURCE: Reuters
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