Bloomberg is reporting that Midway creditors have settled an outstanding lawsuit with Mark Thomas. Midway Games was purchased by Thomas late in 2008 from Sumner Redstone, as the company's fiscal solvency was growing more and more tenuous.
An associate of Thomas will collect up to $5 million ahead of other creditors, though they were hoping to receive $70 million. The creditor committee says that this will allow them to avoid paying certain legal fees.
“The committee is satisfied with the settlement,” said Linda Dakin-Grimm, an attorney for the creditors committee. “We believe the result is an important first step in the ongoing effort to recover damages.”
While the suit with Thomas is settled, it continues against Midway’s Board of Directors and Redstone with his companies. An auction for Midway's major assets will take place June 29, with Warner Bros. having already offered $33 million for the larger half of the company.
The whole business with Redstone selling the company struck us as similar to the chicanery that Wall Street was pulling not a year ago. At least Midway isn't getting a federal bailout.
Midway Creditors Settle with Owner Mark Thomas
Posted June 8, 2009 by David Radd
David Radd has worked as a gaming journalist since 2004 at sites such as GamerFeed, Gigex and GameDaily Biz.