Metro-Goldwyn-Mayer Inc . and about 160 affiliates filed a prepackaged Chapter 11 petition yesterday in New York. The producer and distributor of movies and television programming said it “anticipates” having the previously negotiated reorganization plan approved in a confirmation order “in approximately 30 days.”
Metro-Goldwyn-Mayer Inc. signed a non-binding letter of intent to hand over management of the film studio to Spyglass Entertainment Group’s Gary Barber and Roger Birnbaum , a person with knowledge of the situation said.
Metro-Goldwyn-Mayer Inc. creditors, grappling with the studio’s $3.7 billion debt, are close to an agreement to turn over management to Spyglass Entertainment Group, two people with knowledge of the situation said.
Metro-Goldwyn-Mayer Studios Inc. , distributor of the James Bond and Rocky movies, won court permission to take out a $500 million exit loan, paving the way for confirmation of its bankruptcy plan in 20 days.
Spyglass Entertainment Group Inc. is entitled to a $4 million breakup fee plus expenses of as much as $500,000 if it suffers any damage from a breach of its management agreement with the bankrupt studio, according to a court filing.
Metro-Goldwyn-Mayer Studios Inc. ’s new board will include three directors from the creditors that helped restructure the company, according to bankruptcy court papers that leaves two directors unnamed.