Sumner Redstone Sued by Midway Games Creditors Over Stake Sale May 13 (Bloomberg) -- Sumner Redstone and his National Amusements Inc. holding company were sued by Midway Games Inc. creditors over claims the video-game maker was hurt when Redstone sold his 87 percent stake in it for $100,000. The November transaction generated more than $700 million in tax losses for Redstone, enabling him and his company to obtain a “massive” tax refund, the official committee of unsecured Midway creditors said in a complaint filed yesterday in U.S. Bankruptcy Court in Wilmington, Delaware. “The transaction caused Midway irretrievably to lose the ability to take advantage of its valuable accumulated net operating losses and other tax assets,” the creditors committee said. Midway Games, the creator of the Mortal Kombat video-game series, sought bankruptcy protection from creditors in February, saying the change in ownership accelerated buyback requirements. The creditors accuse Redstone, the chairman of CBS Corp. and Viacom Inc., of fraudulent transfer and breach of fiduciary duty, and they seek unspecified damages. “This suit is completely without merit,” Brandy Bergman, a spokeswoman for National Amusements, said in an e-mailed statement. “The conduct of Mr. Redstone and NAI was entirely proper and we strongly disagree with any suggestion that Mr. Redstone or NAI breached any fiduciary duties.” The case is In re Midway Games Inc., 09-10465, U.S. Bankruptcy Court, District of Delaware (Wilmington.) |
Thread abonnieren
