MGM Gets Financial Support Through Chapter 11 Bankruptcy Plan
Posted on Wed Nov 3, 2010 11:11 AM PDT

Courtesy: MGM
NEW YORK, New York (X17online) - MGM has filed a financial-reorganization plan at the New York U.S. Bankruptcy Court.

In the plan, the studio named Spyglass Entertainment execs Roger Birnbaum and Gary Barber as CEO's of MGM. Over 100 studio lenders agreed on the deal that would exchange nearly $4 billion in debt holdings for 99% of the financially-troubled company.

Carl Icahn, who is one of MGM's biggest debtholders, made changes to the final terms of the deal before it was approved.

MGM chief Steve Cooper made the following statement:

    “For many months, we have been working with our lenders to explore the strategic options available to MGM to improve MGM’s financial position and maximize the company’s value. By sharply reducing MGM’s debt load and providing access to new capital, the proposed plan of reorganization achieves these goals. Having received approval through our recently completed solicitation process, we are pleased that the lenders support MGM’s approach. We now look forward to quickly emerging from Chapter 11.”

MGM will hold on to a 50% stake in The Hobbit movie, and will also seek to resume production plans on the next 007 film.