To settle the outstanding claims against former owner Sumner Redstone, Bloomberg is reporting that the creditors' committee of the defunct publisher Midway Games has agreed to a $1 million cash lump sum payout.

It was previously reported that prior to the lump sum agreement, unsecured creditors of the parent company would only be able to recover 16.5 percent of what had been owed, while unsecured creditors of subsidiaries would only be eligible to 25 percent. After reportedly liquidating its Chapter 11 plan last week, the new cash agreement represents a more financially beneficial deal for all parties involved.

Midway's death spiral comes to a finale following a tawdry love affair with conspiracy-fueled headlines, including legal battles and multiple companies picking away properties from the company like vultures at a fresh corpse. The bankruptcy court will rule on the settlement agreement on June 23.

[Via GI.biz]

This article was originally published on Joystiq.

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