Judge dismisses claims from Midway creditors

Posted Feb. 3, 2010 at 3:33 p.m.

Associated Press | A Delaware bankruptcy judge has
dismissed claims brought by Midway Games’ creditors committee against
former directors and media mogul Sumner Redstone.

The judge last week dismissed claims alleging that the directors,
Redstone, and his National Amusements holding company breached their
fiduciary duties to Chicago-based Midway.


While chastising the defendants for overseeing the ruin of Midway, the judge said they were able to hide behind the protections of Delaware’s corporation law.

The creditors claimed that the defendants engaged in self-serving deals in 2008 that left the company saddled with debt owed to National Amusements.

Midway, maker of the “Mortal Kombat” video games, sought bankruptcy protection last year, citing accelerated debt obligations stemming from Redstone’s sale of his majority stake in late 2008 for just $100,000.

 

One comment:

  1. Chris Lamison the Insurance Guy Feb. 20, 2010 at 10:51 a.m.

    even though I enjoy the games, I do wish you could opt out of the endless reports that go to non-players. I am certain that there is some computer programer smart enough to do that. FB, would prefer that everyone have to endure this crap because they make money off those folks who buy the real cash for the games.