The creditors of bankrupt publisher Midway Games have settled a lawsuit with Mark Thomas relating to his purchase of an 87 percent stake in the company from Sumner Redstone.

The settlement will let an affiliate of Thomas collect up to $5 million from the proceeds of the publisher’s sale, minus any money Midway paid Thomas after the firm filed for bankruptcy, Bloomberg reports.

In return for the $5 million secured claim, which is much less than the $70 million Thomas had originally sought, the shareholder and his affiliates will release the company of all other claims.

“The committee is satisfied with the settlement,” said Linda Dakin-Grimm, an attorney for the creditors committee. “We believe the result is an important first step in the ongoing effort to recover damages.”

Thomas purchased an 87 percent stake in the company from Sumner Redstone late last year, while Midway filed for Chapter 11 bankruptcy in February.

Last month Midway’s creditor committee accused Redstone of fraudulent transfer and breach of fiduciary duty, and the case against the former owner will now move forward.

Bloomberg also reports that Midway has received approval from a US bankruptcy court to hold a June 29 auction for most of its assets. Warner Bros. Entertainment has so far offered $33 million for the majority of the publisher’s US assets, including the Mortal Kombat franchise and Midway’s Chicago and Seattle-based development studios.