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Midway creditors settle lawsuit with investor Mark Thomas

By on June 9, 2009
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Bloomberg reports that the creditor committee that was suing Mark Thomas over his investment in Midway have settled.

Sumner Redstone, the majority shareholder in Midway, sold his 87% stake to Mark Thomas for $100,000 in November 2008. Under the terms of the deal, Mark Thomas also took over a $30 million secured loan and a $40 million unsecured loan.

Warner Brothers have tabled a bid for $33 million for substantially all of Midway’s assets. Given that Thomas had a $30 million secured loan, he would have taken the lion’s share of this money, leaving the creditors of the bankrupt company with close to nothing.

Under the new settlement, Thomas will reduce his secured claim to $5 million and drop all other claims on Midway.

That’s a big drop from a claim of $70 million but still a pretty good return on a $100,000 investment (although I suspect that his legal fees will dwarf the money that he paid Redstone.)

 

(via GamesIndustry.biz)

About Nicholas Lovell

Nicholas is the founder of Gamesbrief, a blog dedicated to the business of games. It aims to be informative, authoritative and above all helpful to developers grappling with business strategy. He is the author of a growing list of books about making money in the games industry and other digital media, including How to Publish a Game and Design Rules for Free-to-Play Games, and Penguin-published title The Curve: thecurveonline.com