Submitted by Sylvie Lang
The legal dispute between Midway Game's unsecured creditors committee and its majority shareholder, Mark Thomas, over the company's bankruptcy has been settled. The creditors asked a Delaware bankruptcy judge to approve the settlement on June 4, 2009. Thomas has accepted a $5 million payment, a fraction of the $30 million secured claim that made him the video-game maker's first ranking creditor. The settlement also eliminates Thomas' $40 million unsecured claim. Thomas will be paid either on the effective date of reorganisation or when the sale of Midway's assets closes, whichever occurs first.
Coverage at Chicago Tribune.com
