In late December 2010, MGM studios completed bankruptcy proceedings and are now moving forward with a restructuring plan led by the co-CEO’s from Spyglass, Barber and Birnbaum. MGM has seen some employee attrition and also laid off 50 employees.
There is some speculation on which movies MGM will fund, given that they are in a 50/50 deal with WB for “The Hobbit” and Bond 23.
Additionally, Lionsgate is still pursuing legal action against Carl Ichan in his failed take over bid from late October. Ichan is still a major shareholder in both studios having participated in the MGM pre-packaged bankruptcy process.
I’m sure we will hear more as the legal court drama unfolds!
The ongoing story of the fate of MGM Studios is now in the hands of the US District Court judge in NYC. MGM filed for chapter 11 bankruptcy reorganization last week, Continue reading
In an interesting week of daily news reports regarding the fate of MGM studios, it appears that the pre-packaged bankruptcy deal has been approved today by the current holders of MGM’s $4 bill debt. The vote effectively joins Spyglass and MGM studios and will be directed by co-CEO’s from Spyglass management. Continue reading
In another move to save MGM, LionsGate and lead investor billionaire Carl Icahn offer tender for merger.
MGM still has a proposal from the private company Spyglass Entertainment on the table, after declining the proposal last month from Sahara India.
Icahn currently owns a stake in both LionsGate and MGM.
CNBC Article http://www.cnbc.com/id/39629706
Wall Street Journal article http://online.wsj.com/article/SB10001424052748704911704575326932622839288.html