The world of high finance is a stange thing and something way beyond my abilities as a mere mortal, so I was hoping someone could point me in the right direction as to what is going on here.
Mark Thomas a relative unknown in the media world purchased Midway outright from Sumner Redstone last year for $100k and the $70 million debt that the company was currently in.
Now fast forward to today where Midway has been declared bankrupt and the vultures have swooped in, I would now presume that Mark’s little gamble would have cost him $70 million as he took on the debt of the company… right?
Well no, it seems that not only is he not liable for the $70 million but they are going to give him his $100k back along with an extra $4.9 million… The only reasoning I can see for this is that the creditors stated that if they went to court with Mark he would have defended his position “vigorously” and
“extensive, time-consuming and costly discovery, research and litigation.”
Or in other words he was going to be a right royal pain in the ass. So if you are in the market for an extra $4.9 million then just go and find yourself a failing company, take it over, watch it fail and then defend your actions “vigorously”.
Last Updated: June 9, 2009