Midway creditors upset by possible insider dealing


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.

This article was originally published on Joystiq.