Judge Approves Midway Liquidation PlanS

Formerly a household name in video games, the bankrupted publisher will end up paying creditors between 16 and 25 percent of what they were owed, under a plan approved by a Delaware judge on Friday.

Midway was long gone before Friday's judgment, its assets bought up by Warner Bros. Entertainment last year in a transaction worth about $49 million. The distribution of those proceeds will give about $25 million to unsecured noteholders - owed $155 million - and $9.2 million to unsecured creditors, who were owed $9.2 million.

The unsecured creditors had sued, alleging that a fraudulent sale of Midway's stock had damaged them. A judge tossed that suit, and another suit over the order in which claims would be paid was recently settled for a $1 million.

Midway Games Wins Court Approval of Liquidating Plan [BusinessWeek]