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MGM creditors 'back bankruptcy deal with Spyglass' | MGM creditors 'back bankruptcy deal with Spyglass' |
(1 day later) | |
Creditors of Hollywood's legendary MGM studio have voted in favour of a bankruptcy plan offered by US firm Spyglass Entertainment. | |
The rescue deal would put Spyglass at the helm of MGM, which is struggling under $4bn (£2.5bn) of debts. | |
The creditors rejected rival offers including from Canada's Lionsgate, part-owned by billionaire Carl Icahn. | |
The months of financial deadlock meant several film projects were put on hold, including the latest 007 movie. | |
MGM has struggled due to several box office flops and a DVD sales slump. | |
The rescue plan provides for MGM's secured lenders to exchange $4bn in debt for equity in the company upon its emergence from Chapter 11 bankruptcy. | |
The trimmed-down company would then be taken over by Spyglass. | |
In a statement, MGM, famous for its trademark roaring lion logo, said that its lenders had "overwhelmingly approved its proposed plan of reorganisation" by Spyglass. | |
The financial rescue of MGM is key to the production of several movie blockbusters. | The financial rescue of MGM is key to the production of several movie blockbusters. |
In April, work on the 23rd film in the James Bond franchise was suspended due to uncertainty over MGM's future. | |
The British production company behind the project said at the time that the film was on hold "indefinitely". | |
There was no immediate comment this weekend on when production might resume. | |
Spyglass's most notable recent success was production of Clint Eastward's last film Invictus. |