DP ServBot
03-05-2009, 02:10 PM
http://www.blogcdn.com/www.joystiq.com/media/2009/03/midwaylostanddamned.jpg (http://www.gamepolitics.com/2009/03/05/midway-insider-trade-claims-likely-focus-redstone-depositions)
Looks like the long arm of the law finally caught up to the Redstones (http://www.gamepolitics.com/2009/03/05/midway-insider-trade-claims-likely-focus-redstone-depositions), as Sumner and his daughter Shari have both been subpoenaed by the U.S. Bankruptcy Court, District of Massachusetts, regarding Sumner selling his stake in Midway to Mark Thomas (http://www.joystiq.com/2008/12/01/redstone-to-sell-stake-in-midway-for-about-100k/). Both of the Redstones must appear in a New York court later this month for deposition and will provide physical and electronically-stored documents pertaining to the sale of Midway (http://www.joystiq.com/tag/midway). For some odd reason, Mark Thomas hasn't been called. He bought Sumner's stake in the company for $100,000 and assumed $70 million in debt in doing so, which is something we would assume the court would want to hear about.
Speculation suggests that Mark took over the $70 million debt because $30 million of it was secured debt, meaning that it would be paid to Thomas before the bondholders, who are owed a total of $150 million by Midway. The subpoena document states: "The cash collateral order places a clear emphasis on insiders getting paid before and, potentially, at the expense of the estates and their creditors." If you want to read the document for yourself, click here (http://media.libsyn.com/media/gamepolitics/Midway-BK-bankruptcy-sub-shari-R.pdf) (warning: pdf link).
[Via Edge (http://www.edge-online.com/news/ex-midway-bigwigs-subpoenaed)]http://www.joystiq.com/media/feedlogo.gif (http://www.joystiq.com)Former Midway execs subpoenaed over company sale (http://www.joystiq.com/2009/03/05/former-midway-execs-subpoenaed-over-company-sale/) originally appeared on Joystiq (http://www.joystiq.com) on Thu, 05 Mar 2009 13:58:00 EST. Please see our terms for use of feeds (http://www.weblogsinc.com/feed-terms/).
Read | Permalink (http://www.joystiq.com/2009/03/05/former-midway-execs-subpoenaed-over-company-sale/) | Email this (http://www.joystiq.com/forward/1479857/) | Comments (http://www.joystiq.com/2009/03/05/former-midway-execs-subpoenaed-over-company-sale/#comments)
More... (http://www.joystiq.com/2009/03/05/former-midway-execs-subpoenaed-over-company-sale/)
Looks like the long arm of the law finally caught up to the Redstones (http://www.gamepolitics.com/2009/03/05/midway-insider-trade-claims-likely-focus-redstone-depositions), as Sumner and his daughter Shari have both been subpoenaed by the U.S. Bankruptcy Court, District of Massachusetts, regarding Sumner selling his stake in Midway to Mark Thomas (http://www.joystiq.com/2008/12/01/redstone-to-sell-stake-in-midway-for-about-100k/). Both of the Redstones must appear in a New York court later this month for deposition and will provide physical and electronically-stored documents pertaining to the sale of Midway (http://www.joystiq.com/tag/midway). For some odd reason, Mark Thomas hasn't been called. He bought Sumner's stake in the company for $100,000 and assumed $70 million in debt in doing so, which is something we would assume the court would want to hear about.
Speculation suggests that Mark took over the $70 million debt because $30 million of it was secured debt, meaning that it would be paid to Thomas before the bondholders, who are owed a total of $150 million by Midway. The subpoena document states: "The cash collateral order places a clear emphasis on insiders getting paid before and, potentially, at the expense of the estates and their creditors." If you want to read the document for yourself, click here (http://media.libsyn.com/media/gamepolitics/Midway-BK-bankruptcy-sub-shari-R.pdf) (warning: pdf link).
[Via Edge (http://www.edge-online.com/news/ex-midway-bigwigs-subpoenaed)]http://www.joystiq.com/media/feedlogo.gif (http://www.joystiq.com)Former Midway execs subpoenaed over company sale (http://www.joystiq.com/2009/03/05/former-midway-execs-subpoenaed-over-company-sale/) originally appeared on Joystiq (http://www.joystiq.com) on Thu, 05 Mar 2009 13:58:00 EST. Please see our terms for use of feeds (http://www.weblogsinc.com/feed-terms/).
Read | Permalink (http://www.joystiq.com/2009/03/05/former-midway-execs-subpoenaed-over-company-sale/) | Email this (http://www.joystiq.com/forward/1479857/) | Comments (http://www.joystiq.com/2009/03/05/former-midway-execs-subpoenaed-over-company-sale/#comments)
More... (http://www.joystiq.com/2009/03/05/former-midway-execs-subpoenaed-over-company-sale/)