Midway Games to distribute proceeds under plan of liquidation

By Caroline Salls

Pittsburgh, Feb. 24 - Midway Games Inc. filed its plan of liquidation and related disclosure statement Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

According to the disclosure statement, the plan will be funded by asset sale proceeds and the proceeds from the company's ongoing operations during bankruptcy.

As of Jan. 31, Midway had roughly $38 million in available cash.

On the plan effective date, all of the company's assets will be transferred to a liquidating trust, which will make distributions to creditors and prosecute claims.

Treatment of creditors will include:

• Holders of secured claims will either be paid in full in cash or receive the collateral securing the claim;

• Holders of priority claims will be paid in full in cash;

• Holders of general unsecured claims will receive a share of net distributable value in the distribution fund; and

• Holders of NAI subordinated claims and interest holders will receive no distribution.

The disclosure statement hearing is scheduled for March 23.

Midway Games, based in Chicago, is a developer and publisher of interactive entertainment software for videogame systems and personal computers. The company filed for bankruptcy on Feb. 12, 2009. Its Chapter 11 case number is 09-10465.

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