MGM deadline extension has Lions Gate smiling

MUMBAI: In its bid to take control of MGM, Spyglass Entertainment suffered a significant setback after the ailing studio extended the deadline for creditors to vote on whether to hand the reins to Spyglass principals Gary Barber and Roger Birnbaum till 29 October.

The Spyglass plan would give the production company a 4.7 per ecnt stake in the studio and the balance of ownership to more than 100 lenders. The Spyglass plan would eliminate all MGM debt. Eventually, Barber and Birnbaum would seek new loans for MGM operating capital.

On the other hand, the delay gives rival suitor Lions Gate more time to convince creditors to consider its proposal. Backed by major shareholders including Carl Icahn and Gordon Crawford‘s Capital Research, Lions Gate proposes to merge with MGM to form a company in which it would hold a 45 per cent stake and the lenders 55 per cent.

MGM isn‘t letting lenders specifically vote on the Lions Gate plan, nor have Lions Gate executives been able to make a formal presentation. But with momentum on its side, the Lions Gate proposal could win by default if lenders vote against adopting the Spyglass plan.

One way or another, MGM needs to restructure its finances to reduce or eliminate almost $4 billion in debt. Any restructuring likely would culminate in the filing of a pre-packaged reorganisation plan in US Bankruptcy Court.

Latest Reads
Usha International associates with YRF’s Sui Dhaaga – Made in India

Usha International, one of India’s leading household consumer durables company, proudly announces its association with Sui Dhaaga - Made In India produced by Yash Raj Films and starring Bollywood heartthrobs Varun Dhawan and Anushka Sharma.

Movies Hindi
Kamal Haasan talks about the pathbreaking films that inspired his career

MN+, the gold class of Hollywood movies associated with Kamal Haasan’s Vishwaroop 2 for Season 3 of Pathbreakers.

Movies Hollywood
No. 1 Bhojpuri Channel, ZEEL’s Big Ganga collaborates with foremost Bhojpuri superstar Ravi Kishan for a 7-movie deal

Over the last two decades, Bhojpuri movies industry has seen a revolution in the form of content, talent, and production.

Movies Regional
Zee Cinemalu Announces World Television Premiere of Superhit Romance-Idi Maa Prema Katha

Continuing to respect and support new-time actors, Zee Cinemalu’s World Television Premiere of Idi Maa Prema Katha stars the well-known faces from the small screen – Zee Telugu’s very own Anchor Ravi and Kalyana Vaibhogam-famed Meghana Lokesh.

Movies Regional
&pictures to air Sonakshi Sinha and Sidharth Malhotra?s spine-chilling thriller Ittefaq on Saturday, 21st July 2018 at 8pm

A CBI officer is assigned a double murder case which involves two witnesses who are also the prime suspects of the case.

Movies Hindi
Zee Action to air The Monkey King 2 on Saturday, 21st July at 8pm

Five hundred years after the Havoc in Heaven, the Tang Priest is appointed by Buddha to go to the West to fetch the sacred scriptures

Movies Hindi
Zee to launch Zee Classic HD channel

The Punit Goenka-led Zee Entertainment Enterprises Ltd (ZEEL), is all set to launch Zee Classic's HD version.

Movies Hindi
Shemaroo Entertainment Releases Padmaavat On Blu-ray and DVD for Cinema Lovers

Shemaroo Entertainment Limited, one of India?s leading global content power house, released the Blu-rays and DVDs of Sanjay Leela Bhansali?s magnum opus, Padmaavat- one of the most expensive Indian films ever made.

Movies Hindi
Al-Futtaim, PVR sign MoU to explore opportunities in MENA region

Multiplex operator PVR signed a memorandum of understanding (MoU) with Dubai's Al-Futtaim to explore opportunities to jointly develop cinema business in the Middle East and North Africa (MENA) region.

Movies Hindi

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories