MGM Files for Bankruptcy!

Deth_Banger

Well we all knew It was inevitable following the companies financial problems, but it seems strange that the company that gave us many awesome horror movies throughout the years is filing for bankruptcy.

Check out the in depth information courtesy of Variety:

"As it filed for bankruptcy protection, MGM said Wednesday it has enough cash on hand to fund operations including production of a new slate of film and TV series.

MGM, hobbled by $4 billion in debt, formally filed its pre-packaged bankruptcy proceedings on Wednesday in U.S. Bankruptcy Court for the Southern District of New York. The Lion hopes to emerge from Chapter 11 in about a month.

In the filing the company seeks the court's confirmation of its pre-packaged plan of reorganization, five days after MGM's debt holders approved a plan to restructure the studio through a proposal that leaves Spyglass Entertainment toppers Gary Barber and Roger Birnbaum in charge -- and gives investor Carl Icahn a major say-so in the revamped Lion.

The plan calls for current equity holders to be wiped out and the debt holders to receive nearly all the equity in the new company.

"Upon its exit from bankruptcy, MGM expects to raise approximately $500 million in financing to fund operations, including production of a new slate of films and television series," the studio said Wednesday. "MGM will retain ownership of all of its assets."

It seems insane by how much they are in debt by, $4 billion! That ain't no pocket money, I hope they will have success in the restructuring they will go through and hopefully this won't be the end of MGM.

What do you guys think? Is MGM all but over?

Source: Variety & DreadCentral

blog comments powered by Disqus