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http://www.allvoices.com/contributed-news/7235287-mgm-metro-goldwyn-mayer-inc-files-for-bankruptcy
MGM (Metro Goldwyn Mayer Inc.) Files for Bankruptcy
Los Angeles : CA : USA | Nov 04, 2010
By Amy_Watts send a private message
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Views: 97
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MGM logo
Source: theonering.net
One of Hollywood’s longest running media companies, MGM (Metro Goldwyn Mayer Inc.) has filed for bankruptcy and is set to merge with Spyglass Entertainment, another prominent media firm.
MGM took this drastic step on Wednesday as a part of its reorganization strategy to recover from a $4 billion debt. With their creditors’ approval, MGM has filed Chp.11 for financial court protection. The court papers were filed in New York.
MGM’s creditors are willing to forgive the massive $4 billion debt based on the condition that MGM handover control of the restructured studio to them and its management to Gary Barber and Roger Birnbaum of Spyglass Entertainment. The deal was struck after many months of negotiations.
In effect, MGM’s largest secured lenders Credit Suisse Group AG and JPMorgan Chase & Co, will take control of 95% of MGM, while the remaining 5% goes to Spyglass Entertainment.
MGM’s creditors turned down a number of other offers, including Time Warner’s acquisition offer of $1.5 billion.
MGM has been struggling with overwhelming debt since 2005 and the crisis has affected the production and release of many of its upcoming films. These include the latest installation of its very popular James BondJames Bond franchise which has been suspended indefinitely. Many other projects have been shelved due to lack of finances.
MGM executives believe that the reorganization will improve MGM’s financial position. MGM will reportedly earn $500 million from the transaction, which will be used to fund motion picture and television production.
MGM was founded in 1924 and was primarily involved in the production and distribution of films and television programs. MGM made some of Hollywood’s best known films like: Gone with the Wind, the Wizard of Oz, Ben-Hur, Pink Panther and the Rocky film series.
MGM (Metro Goldwyn Mayer Inc.) Files for Bankruptcy
Los Angeles : CA : USA | Nov 04, 2010
By Amy_Watts send a private message
1 0
Views: 97
1 of 5
MGM logo
Source: theonering.net
One of Hollywood’s longest running media companies, MGM (Metro Goldwyn Mayer Inc.) has filed for bankruptcy and is set to merge with Spyglass Entertainment, another prominent media firm.
MGM took this drastic step on Wednesday as a part of its reorganization strategy to recover from a $4 billion debt. With their creditors’ approval, MGM has filed Chp.11 for financial court protection. The court papers were filed in New York.
MGM’s creditors are willing to forgive the massive $4 billion debt based on the condition that MGM handover control of the restructured studio to them and its management to Gary Barber and Roger Birnbaum of Spyglass Entertainment. The deal was struck after many months of negotiations.
In effect, MGM’s largest secured lenders Credit Suisse Group AG and JPMorgan Chase & Co, will take control of 95% of MGM, while the remaining 5% goes to Spyglass Entertainment.
MGM’s creditors turned down a number of other offers, including Time Warner’s acquisition offer of $1.5 billion.
MGM has been struggling with overwhelming debt since 2005 and the crisis has affected the production and release of many of its upcoming films. These include the latest installation of its very popular James BondJames Bond franchise which has been suspended indefinitely. Many other projects have been shelved due to lack of finances.
MGM executives believe that the reorganization will improve MGM’s financial position. MGM will reportedly earn $500 million from the transaction, which will be used to fund motion picture and television production.
MGM was founded in 1924 and was primarily involved in the production and distribution of films and television programs. MGM made some of Hollywood’s best known films like: Gone with the Wind, the Wizard of Oz, Ben-Hur, Pink Panther and the Rocky film series.
