MGM’s creditors have officially approved the restructuring “Plan” that places Gary Barber and Roger Birnbaum as co-CEOs of MGM and essentially wipes away $4 billion in debt in exchange for 95.3 percent equity in the new company. The plan will be put into action immediately following MGM’s recovery from chapter 11 bankruptcy that should take about 30 days to complete.
It’s still unknown what the new MGM will become, essentially whether they will continue to distribute films or not. In the event that it doesn’t, Bond 23 as well as future Bond films will become a major point of contention between the other big distributors, specifically Columbia Pictures, Warner Bros, Fox, and Paramount. One thing is known, the new MGM will have greater emphasis in scripted and reality television shows for cable TV.
MGM Press Release
October 29, 2010- Metro-Goldwyn-Mayer Inc. (“MGM”) today announced that the secured lenders voting in the Company’s solicitation process have overwhelmingly approved its proposed plan of reorganization (“Plan”). MGM will now move expeditiously to implement that Plan, which will dramatically reduce its debt load and put the Company in a strong position to execute its business strategy. MGM is appreciative of the lenders’ support.