MGM restructuring becomes effective, new owners step in
- Source: Xinhua
- [14:57 December 21 2010]
Metro-Goldwyn-Mayer Inc. (MGM) said its reorganization plan became effective Monday after the badly needed $500 million to lift it out of bankruptcy had been secured.
The Hollywood studio, founded in 1924, announced that Gary Barber and Roger Birnbaum, the heads of Spyglass Entertainment, a major creditor of the ailing studio, had become the co-chairmen and chief executive officers of the studio.
"MGM is emerging from one of the most challenging periods of its storied history," Barber and Birnbaum said in a press release.
The duo said they were "honored and inspired at the opportunity of leading one of Hollywood's most iconic studios into its next generation of unforgettable filmmaking, global television production and distribution, and aggressively pursuing, developing and exploiting new digital entertainment platforms."
"Beginning today, MGM is a stronger, more competitive company, with a solid financial foundation and a bright future. We look forward to working with MGM's dedicated employees to build upon this company's legacy," they said.
The company announced its "pre-packaged" reorganization plan, which was confirmed on Dec. 2 by a federal bankruptcy court, three weeks ago.
According to the plan, creditors including billionaire investor Carl Icahn and Spyglass Entertainment would write off approximately $5 billion in debts including accrued interest and fees in exchange for ownership of the studio.
As part of its exit financing, MGM raised $500 million to fund operations, including production of a new slate of films and television series.
J.P. Morgan Chase was retained by MGM to make arrangements for its exit financing, the studio said.