MGM okays Spyglass restructuring plans

MGM okays Spyglass restructuring plans

MUMBAI: MGM has agreed to a plan of its creditors on the restructuring of its more than $4 billion debt.

In a statement, the studio said that it had reached an agreement with creditors that will put the owners of Spyglass Entertainment in charge of one of America?s most successful studios. The agreement has come as a setback to Carl Icahn who was pushing an alternative plan that would have led the studio to merge with Lionsgate in which he happens to be the largest shareholder.

More than half of MGM?s individual debt holders voted in favour of the Spyglass plan that will make the company?s co-founders Gary Barber and Roger Birnbaum co-chief executives of MGM. 

Under the leadership of Barber and Brnbaum, the studio is expected to focus on making fewer, smaller budget films to put the studio back on a solid financial footing. The process of restructuring the business could take as little as one month.

A majority of MGM?s debt is owned by hedge funds including Anchorage Advisors and Highland Capital Management. Other creditors include US financial group JP Morgan Chase.

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