Sloan Exits CEO Post in MGM Restructure

LOS ANGELES: Harry Sloan is out as the CEO of MGM but will remain as chairman, with the studio forming an "Office of the CEO" with production head Mary Parent, CFO Bedi A. Singh and new appointee Stephen F. Cooper, a restructuring expert.

The newly created Office of the CEO, reporting to the MGM Board of Directors, includes Mary Parent, the chairperson for the worldwide motion picture group; Bedi A. Singh, the president of finance and administration and CFO; and Stephen F. Cooper, the newly appointed vice chairman. Cooper is the cofounder and former chairman of Zolfo Cooper, which, according to its website, provides "restructuring leadership to companies and their stakeholders." According to the MGM announcement, Cooper’s main role will be exploring options to improve the studio’s balance sheet.

A statement from the MGM Board said: "Both Mary and Bedi have demonstrated strong leadership during their respective tenures at MGM, and we are confident in their ability to ensure the company continues to aggressively pursue its business objectives. We welcome Steve, who brings unique expertise working with a wide variety of companies to improve their financial position. This leadership team offers MGM the ideal combination of talent to best position the company for the long term: industry experience, management continuity and the addition of a proven professional with expertise in strengthening capital structures. We look forward to working together to maximize MGM’s long-term value."

Sloan said: "We have made important progress building MGM’s operations and executing significant growth initiatives over the last four years. MGM can now draw from the excellent team we have assembled and attract top talent such as Steve Cooper to help lead the company through its next phase. As an investor, I firmly believe that the team will work to bolster MGM’s operational and financial strengths during this challenging macroenvironment."

The move comes as MGM copes with its $3.7 billion debt, much of it a remnant of the 2005 buyout of the studio by Providence Equity Partners, TPG, Sony Corporation of America, Comcast, DLJ Merchant Banking Partners and Quadrangle Group.