Everyone is sick to death of hearing about how bad the economy is, and we all know that some major companies have taken major hits. We’ve been reporting on one of those companies for several months now, with their financial woes culminating with them filing for bankruptcy. It seems that things have gone from bad to worse for the company that has produced the Blitz franchise, Rampage, and of course Mortal Kombat.

Now the franchise that made Midway the popular company that they once were, Mortal Kombat, is attempting to be offloaded. Midway filed a court document that states that the company has withheld $3,775,000 in monies to provide the 29 executives, management, and other key employees in case they reach goals set. One of those goals was to offload the newest franchise starring Vin Diesel set for release later this month, Wheelman which was purchased by Ubisoft for $497,500. The other was to offload Mortal Kombat for an undisclosed amount.

To cover those bonuses, they are actually revoking their initial promise to pay all the former employees their PTO (Paid Time Off) compensation. A letter sent out on 2/9/09 to all employees that were being terminated stated that the company would commit to paying all paid time off for these employees. It also explained the rest of the benefits that they would have and when their last day of work would be, which was 2/14/09.

A letter sent just 11 days later stated that the employees would not receive their compensation until the Chapter 11 Bankruptcy was completed, and only then would the benefits be paid.

The biggest news is definitely that Midway might just sell off the last great franchise they own in Mortal Kombat, but it looks like their last chance to keep their heads above water, and for their former employees to get proper severance benefits.