Midway creditors accept $1 million payout

05/31/2010 Midway creditors accept $1 million payout

To settle the outstanding claims against former owner Sumner Redstone, Bloomberg is reporting that the creditors' committee of the defunct publisher Midway Games has agreed to a $1 million cash lump sum payout.

Previously reported, that up to a lump sum agreement, unsecured creditors of the parent company will only be able to recover 16.5 percent, which was outstanding, while unsecured creditors of subsidiaries would be entitled to only 25 percent. Following reports liquidation of its Chapter 11 plan last week, the new treaty Cash represents a better deal financially for all parties involved.

Midway's death spiral comes to a finale following a tawdry love affair with conspiracy-fueled headlines, including legal battles and multiple companies picking away propertiesfrom a company like vultures on a fresh corpse. The arbitral tribunal will decide on a settlement agreement on June 23.

[Via GI.biz]

Midway creditors to take $ 1 million payout originally appeared on Joystiq Wed, May 30 2010 21:30:00 EST. Please see our terms for use of feeds .

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