Metro-Goldwyn-Mayer Inc. signed a non-binding letter of intent to hand over management of the film studio to Spyglass Entertainment Group’s Gary Barber and Roger Birnbaum, a person with knowledge of the situation said.

Since early this summer the Spyglass founders have been seen as likely candidates to run MGM, which has about $4 billion of debt. Lenders to MGM have endorsed the plan, said the person, who asked not to be identified because the agreement isn’t public.

Spyglass, a Los Angeles-based film production company, presented its restructuring proposal to more than 100 lenders on a conference call last month. The plan, endorsed by MGM’s biggest creditors, involves a bankruptcy filing to convert most of the debt into equity, a person said at the time.

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