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Midway creditors upset by possible insider dealing

by Alexander Sliwinski on Feb 16th 2009 3:10PM

Midway's bankruptcy proceeding has gotten even more dramatic, as accusations of fraudulent insider deals enter the mix. The full story gets very complicated, but the main issue involves the relationship between former Midway owner Sumner Redstone and the relatively unknown Mark Thomas, whom the billionaire sold his stake in Midway to for a paltry $100,000 last December.

A motion has been filed on behalf of several Midway creditors asking: "Who is Mark Thomas?" and "Why did Redstone essentially gift the company to this man?" Given Thomas' current holdings in Midway, when money starts getting divided out to creditors from the bankruptcy proceedings, he is apparently set to make out like a bandit, ahead of the laundry list of others owed money.

Source - Creditors Allege Shady Insider Dealing In Midway Bankruptcy [GamePolitics]
Source - Guessing game over Mark Thomas vexes Midway Games' creditors [Chicago Tribune]
PDF - Creditor motion, hosted by GamePolitics.

Tags: business, insider, insider-deals, insider-trading, mark-thomas, midway, sumner-redstone

Reader Comments (9)

wait with midway trying to get money to pay it creditors then that means it franchises will be up for grabs *cough*EA*cough* big companies will take advantage for this, and since some of the creditors include that game studios i sure they will take a franchise or two

I hope this isn't the case, I'd like for all the Midway franchises to be in one place.

And chapter 11 =/= liquidation.

Greed is killing this goddamned country. Is anyone running anything legitimate these days? Jeez...

Sony should take the advice of 360 fanboy's "advice" and get some good games by purchasing Midway, Epic and Bungie.

I'm sure it will make those Xbots super happy!

*facepalm.

I'd like to see Midway stick around, but I doubt it'll happen. I'm seeing a liquidation in Midway's future.

All you had to do was release some damn MK vs DC Universe DLC, but nooo you chose the hard way out. I hope you choke on that Chaoter 11.

All they had to do was re-release MK Trilogy for XBLA &/or PSN BUT NOOOO you guys don't wanna look back of that sort of thing. Heck, they have some great games that could do some remaking and a nice face lift. Whatever.

I am sure Midway VS Capcom would help in the 'saving'. Doubt Capcom would ever want to work with them after this, though.

Smash TV dude vs. Chip from Chip and Dale's Rescue Rangers. Come on, you know you want it.

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Midway creditors upset by possible insider dealing

Reader Comments (9)

Posted: Feb 16th 2009 3:39PM Solid Jackal said

Posted: Feb 16th 2009 5:01PM (Unverified) said

Posted: Feb 16th 2009 6:32PM deathxrebirth said

Posted: Feb 16th 2009 6:42PM (Unverified) said

Posted: Feb 16th 2009 9:43PM (Unverified) said

Posted: Feb 16th 2009 7:11PM NutMan said

Posted: Feb 17th 2009 2:17PM 7egend said

Posted: Feb 16th 2009 7:39PM (Unverified) said

Posted: Feb 16th 2009 10:25PM deathxrebirth said

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