Spyglass Ent., in its attempt to take control of MGM, has devised a plan to erase MGM's nearly $4 billion in debt, according to THE HOLLYWOOD REPORTER.
Spyglass Ent., in its attempt to take control of MGM, has devised a plan to erase MGM's nearly $4 billion in debt, according to THE HOLLYWOOD REPORTER. Via U.S. bankruptcy court, ownership of MGM would shift to its lenders, who would then provide $500 million to the company for operations. As part of the deal, Cerberus Capital-owned Spyglass will take a 5% share in MGM and put its heads Gary Barber and Roger Birnbaum at the helm.
For the deal to happen, 51% of lenders must sign off on the pre-packaged bankruptcy. Anchorage, Highland, Davidson Kempner and Solis hold 35% of MGM's debt.
Providence Equity, TPG Capital, Sony, Comcast, DLJ Merchant and Quadrangle, which own MGM now, would lose their equity shares in the deal.
A vote on the agreement is expected after Labor Day with the bankruptcy starting soon after. The reorganized MGM would be back in business by November or December.
Rick DeMott
Animation World Network
Creator of Rick's Flicks Picks
