Midway Games Creditors Settle Suit With Shareholder Mark Thomas

Midway Games Inc.’s main creditor committee settled a lawsuit with Mark E. Thomas over his purchase of an 87 percent equity interest in the company from Sumner Redstone prior to the video-game maker’s bankruptcy.

The committee agreed to allow an affiliate of Thomas to collect as much as $5 million ahead of other creditors, whose claims aren’t backed by collateral. Thomas and the affiliates had been seeking as much as $70 million.