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.”
General Growth Properties Inc. ’s reorganization plan doesn’t properly compound interest, according to Wilmington Trust Co., the indenture trustee for 6.75 percent senior notes issued by Rouse Co. and the 3.98 percent exchangeable senior notes due 2027.
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. , distributor of James Bond and Rocky films, won a judge’s approval to reorganize under the management of Spyglass Entertainment Group Inc. and billionaire Carl Icahn , removing the last hurdle to emerging from court protection.