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]


Comments

    I just want to know if the Midway games that were taken off XBox Live are gonna come back.

      All of the rights to the midway games have been sold to other companies already right? They will probably pop up again after midway is finished in America.

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