It seems crazy to say it, but Lionsgate has a friend in Carl Icahn.
After engaging in a lengthy proxy fight with the studio, the renegade investor is throwing his weight behind its bid to merge with Metro-Goldwyn-Mayer.
Icahn announced Thursday that he is prepared to buy debt from the studio’s creditors provided they vote against a prepackaged bankruptcy plan that would see Spyglass chiefs Gary Barber and Roger Birnbaum take control of the company. The offer comes a week before MGM’s noteholders are scheduled to vote on the Spyglass proposal.
TheWrap reported last week that Icahn planned to use his insider status to influence the vote.
“We should not allow ourselves to be railroaded into the Spyglass plan,” Icahn said in a statement. “This is the critical decision point for MGM lenders, yet we are being rushed into an extraordinary Prepackaged Plan with limited information and input, on a ‘hurry up basis’ that frustrates any dissent. I hope to defeat this ‘rush to judgment.’”
MGM has been laboring under $4 billion in debt for much of the past year, while it’s precarious financial position put such blue ticket projects as “The Hobbit” and James Bond in jeopardy.
Icahn has quietly bought up about 13 percent of MGM’s debt. His purchase offer will expire on Oct. 29, the same day the noteholders are scheduled to vote on the Spyglass plan.
Icahn slammed MGM’s management for refusing Lionsgate’s request to put their 11th hour offer out publicly. He said that MGM is also refusing to publicize a third offer for the studio by an unnamed party.
“the plan is being backed by certain members of the MGM creditors committee, and is being ramrodded through with the typical fear tactic that the ‘sky will fall’ if the plan is not approved." Icahn said. "It is more likely for the sky to fall if the Spyglass Plan was approved."
