MGM Files Chapter 11 Bankruptcy
Steve Barton
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And the financial woes continue for MGM. The company that has given us so much wonderful horror fare over the years has officially filed for bankruptcy. Yet, there is a bit of a silver lining. Not much of one, mind you, but enough to stay optimistic for now.
As Per Variety:
As it filed for bankruptcy protection, MGM said Wednesday it has enough cash on hand to fund operations including production of a new slate of film and TV series.
MGM, hobbled by $4 billion in debt, formally filed its pre-packaged bankruptcy proceedings on Wednesday in U.S. Bankruptcy Court for the Southern District of New York. The Lion hopes to emerge from Chapter 11 in about a month.
In the filing the company seeks the court’s confirmation of its pre-packaged plan of reorganization, five days after MGM’s debtholders approved a plan to restructure the studio through a proposal that leaves Spyglass Entertainment toppers Gary Barber and Roger Birnbaum in charge — and gives investor Carl Icahn a major say-so in the revamped Lion.
The plan calls for current equity holders to be wiped out and the debtholders to receive nearly all the equity in the new company.
“Upon its exit from bankruptcy, MGM expects to raise approximately $500 million in financing to fund operations, including production of a new slate of films and television series,” the studio said Wednesday. “MGM will retain ownership of all of its assets.”
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