Judge Approves Midway Liquidation Plan

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Judge Approves Midway Liquidation Plan

Formerly a household name in video games, the bankrupted publisher will end up paying creditors between 16 and 25 percent of what they were owed, under a plan approved by a Delaware judge on Friday.

Midway was long gone before Friday’s judgment, its assets bought up by Warner Bros. Entertainment last year in a transaction worth about $US49 million. The distribution of those proceeds will give about $US25 million to unsecured noteholders – owed $US155 million – and $US9.2 million to unsecured creditors, who were owed $US9.2 million.

The unsecured creditors had sued, alleging that a fraudulent sale of Midway’s stock had damaged them. A judge tossed that suit, and another suit over the order in which claims would be paid was recently settled for a $US1 million.

Midway Games Wins Court Approval of Liquidating Plan [BusinessWeek]

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