Harry Sloan is out as CEO of MGM, the company announced on Tuesday, putting in his place a financial turnaround expert whose job it will be to restructure the company's crushing $3.7 billion debt.
The board of directors made the decision after months of attempts to raise more capital and two days of meetings that ended in Sloan's ouster on Monday night, a studio spokeswoman said. His departure comes one year after he signed a three-year extension on his contract.
In a press release, MGM said that Sloan will continue in the role of non-executive chairman and stay on the studio's board of directors.
But day-to-day operations will now be run by its motion pictures group boss Mary Parent, CFO Bedi Singh and vice chairman Stephen Cooper (left), a trio comprising the 'office of CEO.'
"Steven will come in and work on a business plan with us," said Parent in an interview with TheWrap. "I'm proud of the slate. I'd like more production money, but the focus is on the restructure. And I'm glad we've been able to get six movies up."
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"The decision was made that with the weight of the debt structure, this is not Harry's forte," said a studio executive who declined to be identified. "Harry is an entrepreneur. He inherited a heavily-leveraged company. If Mary is going to get in there and make movies, they need someone to restructure the balance sheet."
