The U.S. Bankruptcy Court has subpeonaed multimedia mogul Sumner Redstone and his daughter Shari in order to investigate the strange circumstance behind his $100k sale of Midway Games to Mark Thomas.
Late last year, Sumner Redstone sold his controlling interest in the failing Midway Games to industry unknown Mark Thomas for the sum of $100,000 plus debt. The sale led to creditors being able to demand immediate repayment for the $150 million they were owed, which ultimately resulted in Midway filing for bankruptcy last month.
With us so far? Here's where things get fishy.
Part of Redstone's agreement with Mark Thomas granted him preferred debt - debt that takes precedence over any other. To Midway's slighted creditors, this means that any large amount of money brought in to the company, say from the sale of a major franchise like Mortal Kombat, could result in Thomas earning a $30 million paycheck on his initial $100,000 investment.
Now lawyers want to know more about what went on during the Redstone/Thomas deal, and have subpoenaed Sumner and his daughter in order to get to the bottom of what looks like a rather shady situation. Shari in particular has been ordered to turn over any and all communications between her part and Thomas', and all documentation passed between the two.
The father and daughter will be deposed at a private law firm in New York on March 19th.
Sumner Subpoenaed Over Midway Games Bankruptcy [The Business Insider - Thanks Ttocs!]