MGM Lenders Approve Spyglass Restructuring Plan

LOS ANGELES: Lenders to Metro-Goldwyn-Mayer have "overwhelmingly approved" a restructuring plan that will convert their debt into equity and see the appointment of Spyglass Entertainment execs Roger Birnbaum and Gary Barber to run the studio following bankruptcy.

The plan provides for MGM’s lenders to exchange $4 billion in debt for equity in the company when it emerges from Chapter 11 bankruptcy. The company would then be taken over by Spyglass.

Carl Icahn had been offering to buy MGM debt in order to secure votes against the Spyglass merger, instead lobbying for an MGM combination with Lionsgate.