A US bankruptcy court document filed by Midway owner Mark Thomas (whoever that is!) reveals some dire information about the publisher that helps us understand how the mysterious Thomas was able to acquire the company for $100,000.
According to GamePolitics' summary of the document, "Midway will run out of cash in late June," having "operated at a loss for most of the last decade. In addition, the publisher "overstated the value of the Mortal Kombat franchise." CitiGroup attempted, and failed, to find a buyer for Midway, which meant that Thomas had little or no competition.
All of this information is just what hasn't been redacted in the document. We assume that the redacted portions deal with the fact that Sinistar is real and that Midway has been exhausting its cash reserves to mine Sinisite in order to make Sinibombs.