Shari Redstone resigns from board of Midway Games

Midway's board said late Friday that it had replaced Redstone with director Peter C. Brown, who is chairman, president and chief executive of AMC Entertainment Inc.

The moves come after Shari Redstone's father, Sumner 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.

National Amusements said that a drop in value of CBS and Viacom shares had put its debt obligations at risk. Sumner Redstone is executive chairman of both CBS and Viacom.

The share sale, however, was below the $400 million initially targeted and failed to pay down enough debt to resolve issues surrounding the covenant.

Shari Redstone sits on a special National Amusements' board committee that is overseeing talks with its bank group and noteholders about meeting the terms of its unsecured debt.

Brown has served on Midway's board since 2005. He has served as AMC's chairman and CEO since July 1999. Brown is a director of Embarq Corp., National CineMedia Inc. and MovieTickets.com.