In the never ending saga of Midway, we have found out that the Official Committee of Unsecured Creditors of Midway have agreed to give Mark Thomas and his associated parties first priority secured claim status against Midway in an amount that is believed to be $5 million. Thomas will be able to collect that amount, less any money that Midway has already paid him since the company filed for bankruptcy protection.

As part of the deal Thomas had to agree to release and relinquish all additional claims against Midway. The deal gives Thomas much less than the $70 million that he was looking for in the settlement. The move really comes as little surprise, as Midway creditors filed suit against Thomas and former owner, Redstone.

While the creditors have come to terms with Thomas, it would appear that Redstone and other Midway Board of Directors members are likely not going to get off the hook that easy. The creditors intend to pursue Redstone and other Board members on a number of issues, including claims such as breach of fiduciary duty, corporate waste, unjust enrichment, and this is just for starters.

The best news is that according to the whispers we hear, the Warner deal does appear to be the direction that Midway will be heading, with the majority of Midway’s assets heading that direction as part of the $33 million stalking horse asset purchase bid that the company made.