Midway Games Inc. announced last week that the company and its U.S. subsidiaries filed voluntary petitions in U.S. Bankruptcy Court for the District of Delaware for reorganization under Chapter 11 of the U.S. Bankruptcy Code.

Only two months ago, Mark Thomas is reported to have spent $100,000 in cash and $70 million in debt to buy Sumner Redstone’s 87% stake in Midway. Of the $70 million in debt that Thomas reportedly took over from Redstone, $30 million is a secured claim that arguably puts him ahead of all unsecured creditors. The company cited to the November 28, 2008, change in ownership, which triggered accelerated repurchase obligations of certain of the company’s debt, as a motivating factor for this filing.

According to Midway’s Chairman, President and CEO Matt Booty “[t]his was a difficult but necessary decision” but the “filing will relieve the immediate pressure from our creditors and provide us time for an orderly exploration of our strategic alternatives. This Chapter 11 filing is the next logical step in an ongoing process to address our capital structure.”

In its filing, Midway listed its liabilities as totaling between $100 million and $500 million, with assets worth at least $10 million but no more than $50 million. Midway has stated that it expects to continue normal operations during the proceedings.