MGM OK’d to exit bankruptcy
December 3, 2010
Troubled Hollywood studio MGM on December 2nd saw its bankruptcy reorganisation plan approved by a New York court, and cleared the way for MGM to speedily exit its Chapter 11 bankruptcy. MGM expects the new plan to become effective mid-December.
“Today’s ruling is an important milestone for MGM,” said Co-CEO Steven Cooper. “Thanks to the support of our lenders and the hard work of our employees, we have moved through the restructuring process quickly. By dramatically reducing MGM’s debt load and providing MGM with access to new capital, the reorganisation plan the Court confirmed today will enable MGM to emerge from this process with a solid financial foundation and will position MGM to be a successful studio going forward.”
The MGM scheme sees the studio’s lenders exchange about $5 billion of debt, including interest and fees, for equity in a restructured MGM.
One project that can go forward is a re-make of the classic comedy The Three Stooges, now being produced at 20th Century Fox, but held up because of the MGM problems.