Midway Games plan of reorganization wins court approval

By Jennifer Lanning Drey

Portland, Ore., May 21 - Midway Games Inc. received court approval of its plan of reorganization Friday, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the company's plan will be funded by asset sale proceeds and the proceeds from its ongoing operations during bankruptcy.

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.

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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