Nobody wants to go through a bankruptcy; there are always personal issues mixed in with the business problems.
According to Kotaku, the development team that has been responsible for 17 years of Mortal Kombat wants out of Midway. It seems they're not happy with the way the publisher has been handling the whole situation and the designing team "is in talks with other publishers." For the record, the guys who gave us Mortal Kombat vs. DC Universe aren't actually under contract, so they don't have to stay with Midway, but if they do go elsewhere, they may not be able to take the MK franchise with them. And they did say they don't really want to leave behind the current development process going on for another MK, so it's a bit of a conundrum. As for Midway, they merely said the team "is in good shape," and they just can't hand out bonuses. Obviously, Midway doesn't want this core team to leave because if they do, that could ring the death toll for the struggling publisher. For our part, we hate to see icons of the video game industry floundering financially; we all grew up with Midway and we'd certainly like them to stick around. We just can't imagine the industry without the word "Midway" on some boxes somewhere!
Anyway, we'll keep you up to date. Hopefully, everyone can resolve their differences cordially and the MK team stays where it is. Then, when Midway finally emerges clean on the other side of this bankruptcy (again, cross your fingers), things can get back to normal.