By Perpetually-in-hot-water MGM has filed for chapter 11 bankruptcy yesterday as a part of a large-scale financial reorganization. It has also announced an agreement between MGM and Spyglass Entertainment, with MGM selling $4 billion in debt in exchange for 99% control of the studio and naming Spyglass heads Gary Barber and Roger Birnbaum as co-CEOs of MGM.
This isn’t the end of MGM, however. Sometimes, when a large corporation like this goes bankrupt, it just means financial restructuring rather than the old crash and burn. MGM chief Steve Cooper seems confident in MGM’s eventual rise from the ashes. “By sharply reducing MGM’s debt load and providing access to new capital, the proposed plan of reorganization achieves these goals. Having received approval through our recently completed solicitation process, we are pleased that the lenders support MGM’s approach. We now look forward to quickly emerging from Chapter 11.â€
The two looming questions here are The Hobbit and the James Bond franchise. MGM has a 50% stake in The Hobbitand needs serious dough to keep a hold of that. Bond, for that matter, has been stalled for a couple years now, and MGM isn’t exactly in a wonderful spot to get a tentpole…
Perpetually-in-hot-water MGM has filed for chapter 11 bankruptcy yesterday as a part of a large-scale financial reorganization. It has also announced an agreement between MGM and Spyglass Entertainment, with MGM selling $4 billion in debt in exchange for 99% control of the studio and naming Spyglass heads Gary Barber and Roger Birnbaum as co-CEOs of MGM.
This isn’t the end of MGM, however. Sometimes, when a large corporation like this goes bankrupt, it just means financial restructuring rather than the old crash and burn. MGM chief Steve Cooper seems confident in MGM’s eventual rise from the ashes. “By sharply reducing MGM’s debt load and providing access to new capital, the proposed plan of reorganization achieves these goals. Having received approval through our recently completed solicitation process, we are pleased that the lenders support MGM’s approach. We now look forward to quickly emerging from Chapter 11.”
The two looming questions here are The Hobbit and the James Bond franchise. MGM has a 50% stake in The Hobbit and needs serious dough to keep a hold of that. Bond, for that matter, has been stalled for a couple years now, and MGM isn’t exactly in a wonderful spot to get a tentpole like that up and running. However, these two properties may very well be on Spyglass’s to-do list.
[Via Hollywood Reporter]