Glu Mobile (NSDQ: GLUU) has restructured the payments it must pay for the acquisition of MIG, a Chinese game company, by converting the entire $25 million to cash payments, rather than a mix of cash and stock, and deferring $11 million of the payments to 2010. Although the company doesn’t have a ton of cash, it was clearly in a bind since its equity isn’t worth much either. At 39 cents a share, the company’s entire value totals $11.5 million—hardly making it a valuable currency to pay off a debt. At the end of the year, Glu expected to have $17 million in cash, not counting an $8 million credit facility. However, it needed to pay $25 million in cash and stock to the MIG shareholders with the first installment due in the first half of 2009. To help, the company is working to reduce expenses by 19 percent, which includes cutting the CEO’s pay.

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In the deal announced today, Glu said it also received a new credit facility that extends the company’s $8 million line of credit through December 2010. Under the revised terms, Glu will make these cash payments: $6 million on Jan. 15, $3 million on April 1, and $5 million on July 1. The remaining $11 million will be paid in quarterly installments of $2.75 million in 2010. MIG shareholders also received promissory notes covering these payments, bearing interest at 7 percent annually. Eric Ludwig, Glu’s SVP and CFO, said: “Combined with our previously announced cost reduction efforts, which will reduce our total non-GAAP operating expenses by approximately 19 percent from second quarter 2008 levels, we believe that we have the necessary working capital in place to focus on executing our business plan and driving Glu toward positive cash flows from operations in 2009.

Glu also reiterated its guidance for 2009. It expects to be cash flow positive for the year with total operating expenses to be about $57 million. Revenue for 2009 is expected to be down between 10 and 15 percent from 2008 revenue, which they are attributing to a decline in foreign exchange rates and a poor economy. Release.