MGM Creditors Get 1-Week Delay on Spyglass Vote (Updated)

Note holders originally asked for more time to weigh Lionsgate’s merger proposal

Last Updated: October 15, 2010 @ 4:50 PM

(Update: 10/15/10 2:45 PM) MGM creditors will get one more week to weigh their options before voting on Spyglass' proposal to take over management of the company.

The new deadline is 5:00 PM ET on Oct. 29, 2010, MGM announced.

On Friday, MGM distributed a supplement to the solicitation package that was originally distributed to the studio's secured lenders earlier this month.

"The supplement contains additional details of the Company’s financial information included in the original solicitation materials," MGM's statement reads. "In order to provide lenders sufficient time to review the supplemental information, MGM has extended the voting deadline."

The deadline extension comes as MGM's movie chief Mary Parent formally stepped down from the studio on Friday afternoon.

Earlier

MGM creditors are asking to delay an Oct. 22 vote on Spyglass’ proposal to take over the studio after it emerges from Chapter 11, according to a Los Angeles Times report.

Debt holders wanted additional time to weigh an 11th hour merger proposal from Lionsgate.

One of the company’s note holders, Franklin Templeton Investments, lodged the request on behalf of the nearly 100 creditors, the Times reports.

A spokesperson for Franklin Templeton declined to comment, and MGM failed to respond to TheWrap’s calls.

Under Lionsgate's proposal, MGM lenders would get a 55 percent stake in the merged company. That offer is backed by billionaire Carl Icahn, who is a major Lionsgate shareholder and owns roughly 10 percent of MGM's debt.

Under Spyglass’ proposal, the company’s chiefs Gary Barber and Roger Birnbaum would take over the management of the studio along with a minority ownership stake.