MGM has made it official, formally launching the process of asking its debtholders to approve a pre-packaged bankruptcy plan.
Spyglass toppers Gary Barber and Roger Birnbaum would serve as the Co-Chairman and CEOs of MGM following the company’s emergence from Chapter 11. The hobbled studio made the announcement Thursday afternoon and said it would file for Chapter 11 once it receives approval from a majority of its lenders.
It said the plan provides for the lenders to exchange more than $4 billion in debt for 95.3 percent of equity in MGM upon its emergence from Chapter 11. Spyglass Entertainment will receive 0.52 percent of the reorganized MGM and two entities owned by Spyglass affiliates – Cypress Entertainment Group Inc. and Garoge Inc. – will receive approximately 4.17 percent.
•CLICK HERE to read the Variety story.
•CLICK HERE to read the Wall Street Journal story.
