The Am Law Daily blog reports that more than 100 MGM bondholders and lenders signed off on the pre-approved re-organization plan, which involves swapping a $4 billion debt for a 95 percent ownership stake in the film studio when it emerges from bankruptcy protection. The plan is for Spyglass Entertainment executives to oversee MGM's operations once the post-bankruptcy dust settles.
MGM hopes to raise $500 million and continue to churn out tv programs and films as a leaner and meaner post-bankruptcy company. The studio is hopeful the court will okay the proposed re-organization within 30 days.
An effect of the 14-page bankruptcy filing is that it wipes out the ownership stakes of the consortium that presently owns MGM, including Comcast, Sony and a handful of private equity firms.
Ars Gratia Artis ("Art for Art's Sake") and all that, but a movie mogul has gotta eat.
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