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Midway Creditors In $1 Million Settlement With Sumner Redstone
by Kris Graft [PC, Console/PC]
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May 28, 2010
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Creditors for Midway Games agreed to settle remaining claims against former majority stakeholder and media mogul Sumner Redstone for $1 million, Bloomberg reported Friday.
The news comes one week after a U.S. bankruptcy court judge approved a liquidation plan for the former Chicago-based Mortal Kombat publisher. That plan will grant unsecured noteholders a recovery of 16.5 percent of their investment, while unsecured creditors will see a 25 percent recovery. Midway filed for bankruptcy in February 2009.
In May last year, Midway creditors sued Redstone and former Midway chair Shari Redstone, his daughter, along with Midway board members over the late-2008 sale of the company to investor Mark Thomas.
Creditors settled with Thomas a few weeks after they filed the complaint, but continued the suit against the Redstones and board members. Judge Gross dismissed most of the remainder of the suit against Redstone and his company National Amusements in late January this year.
The $1 million he's paying out will settle the rest of the suit, with a bankruptcy court poised to approve the move on June 23.
In July last year, a judge approved Warner Bros.' $33 million acquisition of Midway and its assets. The publisher has since closed down its corporate office in Chicago, sold off Midway divisions in California and Europe, and plans on expanding its new portfolio of ex-Midway assets, which includes Mortal Kombat.
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