Looks like Shari Redstone is running off to help her dad, Sumner, at the expense of Midway Games Inc.
Shari Redstone resigned Friday as chairman of Midway to help her father run family-owned National Amusements Inc. and restructure its massive $1.6 billion in debt. And the clock is quickly ticking for the Redstones to deal with the company, as the Los Angeles Times reports that National Amusements is obligated to make an $800 million payment by Dec. 19.
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Last month, the older Redstone was forced to sell $233 million of his family's nonvoting stake in CBS Corp. and
Viacom Inc. to avoid violating terms of a loan at National Amusements. Experts say that the Redstones may be forced to break up National Amusements, which holds Sumner Redstone's
controlling shares of Viacom Inc., CBS Corp. and Midway Games, along
with slot machine maker WMS Industries Inc. and a 1,500-screen theater
circuit run by Shari Redstone, to make a payment. Sumner Redstone said last week one option may be the sale of the theater chain or using the real estate the theaters sit on as collateral to secure more debt.
Meanwhile, Shari Redstone sits on a special National Amusements' board committee
that is holding discussion with its bank group and noteholders about
meeting the terms of its unsecured debt. She was replaced as chairman of Midway by Peter Brown, current chairman, CEO and president of AMC Entertainment Inc. - Gerald Magpily
See Business Week article
See L.A. Times article
See Dealscape: Redstone assures investors he supports CBS, Viacom
