Midway Games hasn't been in good shape this past while, if you haven't heard yet. Following lay-offs, cancellations, losses, debt, and shutdowns last year, Chapter 11 bankruptcy was filed, followed by a $33 million USD bid from Warner Bros. (WB) for most of the company's assets, including Mortal Kombat.

Yesterday court proceedings brought about the next step in the process -- Midway's acquisition by WB for the aforementioned sum and properties.

No other entities had filed a bid for the newly sold studio, though many had objected over intellectual-property rights, including Mortal Kombat filmmakers Threshold Entertainment and production company Tigon Studios, whom Midway collaborated with on Wheelman. These disputes were resolved yesterday, though, so everything will go forward.

With any luck, any upcoming MK games will remain M-rated as series creator Ed Boon is planning.

Midway's majority shareholder Mark Thomas had secured a $30 million claim in the bankruptcy, with $40 million unsecured; the latter has been eliminated in this new settlement. The comittee of unsecured creditors had sued Thomas, previous majority shareholder Sumner Redstone, and members of Midway's board in May, questioning how quickly Thomas purchase of Redstone's 87 percent stake had happened, and citing his payout as "unfairly large."

(Pictured left: Warner Bros.)