Creditors would exchange their debt for equity with Spyglass taking over
Metro-Goldwyn-Mayer Inc. creditors will be asked to approve Spyglass Entertainment Group's restructuring and pre-packaged bankruptcy plan for the studio within the next week or two, according to a Bloomberg News report.
MGM would file for Chapter 11 bankruptcy after obtaining creditor approval, with the goal of emerging from court protection by the end of the year, said one of the two unidentified Bloomberg sources cited in the story. Susie Arons, an MGM spokeswoman, declined to comment in the report.
As part of a restructuring in bankruptcy, creditors would exchange their $3.7 billion in debt for equity. Management would be handed over to Spyglass's Gary Barber and Roger Birnbaum.
Ken Schapiro, of private equity firm Qualia Capital, is in talks to become chief operating officer of MGM, one person told Bloomberg.
Spyglass signed a letter of intent to take over the studio Wednesday, as TheWrap reported. Spyglass pitched their plan Aug. 18.
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