MGM restructuring plan approved by court
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Struggling U.S. movie studio Metro-Goldwyn-Mayer Inc.(MGM) said Thursday its restructuring plan has been approved by a federal bankruptcy court, allowing it to emerge from bankruptcy protection.
Under the new plan, the company's lenders will exchange nearly five billion U.S. dollars in outstanding debt, including accrued interest and fees, for most of the equity in MGM. Spyglass Entertainment Partners Gary Barber and Roger Birnbaum will become the company's new owners.
The approval is expected to end turmoil and uncertainty that have plagued the movie studio for 18 months.
"Today's ruling is an important milestone," MGM's Co-Chief Executive Officer Stephen Cooper said, adding that the approval will enable the 86-year-old entertainment company "to be a successful studio going forward."
The company expects the plan to take effect by mid-December.
Last month, MGM filed for bankruptcy protection as it was unable to pay off huge debts worth more than four billion dollars or make new movies.
Previously the court had allowed MGM to retain J.P. Morgan Chase to arrange 500 million dollars in exit financing to fund operations, including the production of new TV series and films.
