A U.S. Bankruptcy Court judge has ruled that some last-minute modifications to its financial-reorganization plan prior to its Nov. 3 court filing have been approved, meaning the plan won’t have to go before lenders for another over vote by lenders.
The bankruptcy reorganization review is expected to take at least another two weeks to complete but eventually will result in Spyglass Entertainment co-toppers Gary Barber and Roger Birnbaum assuming the reins of MGM as co-CEOs of the Century City studio.
The “prepackaged” Chapter 11 bankruptcy plan was approved by more than 100 MGM lenders, who agreed to swap almost $4 billion in debt holdings for a collective 95 percent stake in MGM. But the final terms contained certain changes demanded by investor Carl Icahn, a big MGM debtholder.
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