MGM Emerges from Chapter 11

LOS ANGELES: MGM’s restructuring plan has become effective, with two new heads in place for the studio and $500 million worth of financing.

The studios’ lenders converted about $5 billion in debt for equity and were approved for a "pre-packaged" plan of reorganization earlier this month. The reorganization sees Spyglass executives Gary Barber and Roger Birnbaum taking on leadership for MGM as co-chairman and CEOs. The plan also raised $500 million to fund operations, including the production of new film and TV projects.

"MGM is emerging from one of the most challenging periods of its storied history. We are honored and inspired at the opportunity of leading one of Hollywood’s most iconic studios into its next generation of unforgettable filmmaking, global television production and distribution, and aggressively pursuing, developing and exploiting new digital entertainment platforms," said Barber and Birnbaum in a joint statement. "Beginning today, MGM is a stronger, more competitive company, with a solid financial foundation and a bright future. We look forward to working with MGM’s dedicated employees to build upon this company’s legacy."