Midway Games' plan of reorganization effective as of June 11

By Lisa Kerner

Charlotte, N.C., June 14 - Midway Games Inc.'s plan of reorganization became effective on June 11, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

The court entered an order confirming the plan on May 21.

According to the filing, the liquidating trust agreement has been executed and the Midway Liquidating Trust has been established.

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

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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