Metro-Goldwyn-Mayer Inc . held its first Chapter 11 hearing yesterday and the bankruptcy judge set aside Dec. 2 for a confirmation hearing to consider approving the reorganization plan that creditors accepted in advance.
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 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. ’s creditors, unsatisfied with proposals to buy or restructure the debt-laden film studio, have contacted Hollywood executives who may be willing to run it, people with knowledge of the situation said.
Spyglass Entertainment Group Inc., whose executives Gary Barber and Roger Birnbaum will run Metro- Goldwyn-Mayer Inc. after its bankruptcy, is entitled to a $4 million break-up fee plus expenses of as much as $500,000 if it suffers any loss or damage from a breach of its agreement with the studio, according to a court filing.