Court Approves MGM Bankruptcy Plan

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LOS ANGELES: The U.S. Bankruptcy Court for the Southern District of New York has approved MGM’s pre-packaged plan of reorganization, paving the way for the studio to emerge from Chapter 11.

MGM expects the plan to become effective by mid-December. Once it emerges from Chapter 11, the company’s secured lenders will exchange approximately $5 billion for most of the equity in MGM. The company will then be led by Spyglass partners Gary Barber and Roger Birnbaum, as co-chairmen and CEOs.

"[This] ruling is an important milestone for MGM," said co-CEO Stephen Cooper. "Thanks to the support of our lenders and the hard work of our employees, we have moved through the restructuring process quickly. By dramatically reducing MGM’s debt load and providing MGM with access to new capital, the reorganization plan the court confirmed…will enable MGM to emerge from this process with a solid financial foundation and will position MGM to be a successful studio going forward."