Billionaire investor Carl Icahn is offering to buy debt from Metro-Goldwyn-Mayer creditors on condition they vote against a proposed combination with Spyglass Entertainment.

Icahn, Lions Gate Entertainment Corp. largest shareholder, is backing the Santa Monica studio's rival run for MGM, said his group will purchase senior secured loans to the hobbled Hollywood studio at 45 cents on the dollar. He already owns about 13 percent of the $4 billion in debt.

The offer to buy debt comes as Icahn lines up alongside arch-nemesis Lions Gate to defeat a rival bid to control MGM from Spyglass and succeed with their own. Icahn said the Spyglass plan for MGM is a "prescription for disaster,” and that it was being “ramrodded through with the typical fear tactic that the 'sky will fall' if the plan is not approved."

CLICK HERE to read the Hollywood Reporter story.

CLICK HERE to read the New York Observer story.

For reprint and licensing requests for this article, CLICK HERE.