MGM files for Bankruptcy

MGM files for bankruptcy protection

Filing comes after leading creditors strike a deal with corporate raider Carl Icahn. He agrees to support a plan under which Spyglass Entertainment executives will run Metro-Goldwyn-Mayer when it exits Chapter 11.

Ben Fritz and Claudia Eller, Los Angeles Times November 4, 2010

Metro-Goldwyn-Mayer, the fabled studio whose origins go back to Hollywood's earliest days, filed for bankruptcy protection, sagging under a mountain of debt.

The filing, made Wednesday morning in New York, came after MGM's leading creditors struck a deal with corporate raider Carl Icahn, who had amassed about 15% of the company's debt and was previously pushing for a merger between MGM and rival studio Lions Gate Entertainment.

Instead, Icahn agreed to support a plan under which the chief executives of film production and finance company Spyglass Entertainment will run MGM when it exits Chapter 11, which could occur as quickly as next month.

They didn't get that we are conservatives and don't want to watch liberal BS movies?

I smell a bailout coming!

Nope no bailout.

Interestingly though, Spyglass is owned by Cerberus. You know, the same Cerberus that owns Bushmaster, etc.? :D

I didn't know that. Interesting.

Sounds like they are getting the money to finish the next Bond movie, can't remember where I read that though.