Lions Gate Talking to MGM Creditors

Chairman Michael Burns reportedly is trying to shape a plan to acquire the studio

Lions Gate Entertainment Corp., the independent film and TV producer, has approached creditors of ailing Metro-Goldwyn-Mayer Inc. to help shape a plan to acquire the studio, two people with knowledge of the situation said.

Lions Gate Vice Chairman Michael Burns has been meeting in New York with investors who hold some of MGM’s $3.7 billion debt, according to the people, who requested anonymity because the discussions are private.

Any agreement to buy Los Angeles-based MGM would have to be approved by Carl Icahn, Lions Gate’s largest shareholder. He took a 10-day break from efforts to gain control of Vancouver-based Lions Gate’s board so the company could make a case for certain acquisitions. That stand-still agreement expires July 19.

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