MGM Studios has produced a lot of great movies over the decades. Now the movie studio is working on the script of its own bankruptcy.
MGM’s film library boasts more than 4,000 titles and more than 200 Academy Awards. It’s got James Bond, the Pink Panther, and Rocky. But MGM hasn’t had many hits lately, and it’s $4 billion in debt.
So the studio has developed a “pre-packaged” bankruptcy plan and started presenting it this week to its creditors. If enough creditors approve the plan, MGM says it will file for Chapter 11, hoping to come out of bankruptcy quickly.
The re-organized MGM would look different: its creditors would forgive its debt in exchange for ownership stakes of about 95 percent. Production company Spyglass Entertainment would fold in some of its assets and subsidiaries and own most of the rest.
Spyglass founders Roger Birnbaum and Gary Barber would run the new MGM.