Sections

Sumner and Shari Redstone subpoenaed over Midway sale

Friday, 6th March 2009 00:00 GMT By Stephany Nunneley

sumner

Sumner Redstone and his daughter Shari have been subpoenaed by the US Bankruptcy Court of Massachusetts over the sale of Midway shares to Mark Thomas.

Thomas purchased the Redstones’ share in Midway for $100,000, inheriting a $70 million debt with it.

His reasoning for accepting those terms was due to $30 million of the debt being secured, meaning he was to be paid before bondholders — who were owed $150 million by Midway.

The subpoena document states: “The cash collateral order places a clear emphasis on insiders getting paid before and, potentially, at the expense of the estates and their creditors.”

Both Sumner and Shari Restone are due to appear in court this month for deposition and to provide documents pertaining to the sale.

Mark Thomas hasn’t been called.

Court documents posted through the link.

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