Midway Creditors Reach Settlement With Mystery Owner

June 8, 2009 -

It appears as if Mark Thomas's brief and controversial reign as owner of Midway Games has come to an end

Bloomberg reports that Thomas reached a settlement with the bankrupt publisher's main creditors late last week. As GamePolitics reported last month, a committee of creditors alleged fraud and breach of fiduciary duty against Thomas, former owner Sumner Redstone, and several current and former Midway board members. The just-announced settlement, however, applies only to Thomas; litigation against the other defendants continues.

Thomas, an otherwise obscure investor, picked up Midway for a song last November, paying just $100,000 for the debt-ridden company. Under terms of the settlement he will walk away with up to $5 million and will be paid prior to other creditors whose claims aren't backed by collateral.

Attormey Linda Dakin-Grimm, who represents the creditors committee, told Bloomberg:

The committee is satisfied with the [Thomas] settlement. We believe the result is an important first step in the ongoing effort to recover damages.

Midway will hold an auction for its remaining assets on June 29th. Leading bidder Warner Bros. has already offered $33 million for Midway.


Comments

Re: Midway Creditors Reach Settlement With Mystery Owner

From my understanding, all he wanted was the bankrupcy writeoff. The $5 million in cash was nothing to what he gets to claim in losses for tax reasons. I wonder if he will still be able to make the writeoffs under the new agreement.

Re: Midway Creditors Reach Settlement With Mystery Owner

guess it's better than what he would have gotten (wasn't it like 30 million?)

 

I still find this complete BS and probably composed of many illegal or dirty tactics.

By the way...i have yet to even see what this man looks like? has a picture of him ever been released?

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