Now that the U.S. Bankruptcy Court for the Southern District of New York has approved MGM’s reorganization plan, by mid-December, if all goes smoothly, the lean and mean MGM will have emerged from Chapter 11 bankruptcy, MGM’s secured lenders will exchange some $5 billion (which includes accrued interest and fees) for most of the equity in MGM, JPMorgan Chase will have raised $500 million for operations funding, and Spyglass partners Gary Barber and Roger Birnbaum will take over the studio as co-chairman and chief executive officers of MGM Inc. That means they can start greenlighting movies and TV shows.
This clears the way for full steam ahead on the likes of Sam Mendes’ installment of James Bond, starring Daniel Craig, Darren Aronofsky’s return to the remake of RoboCop, and a slew of other projects that have been placed in the freezer until all risks of getting tangled up in bankruptcy were removed.
MGM Co-CEO Stephen Cooper stated:
“Today’s ruling is an important milestone for MGM. Thanks to the support of our lenders and the hard work of our employees, we have moved through the restructuring process quickly. By dramatically reducing MGM’s debt load and providing MGM with access to new capital, the reorganization plan the Court confirmed today will enable MGM to emerge from this process with a solid financial foundation and will position MGM to be a successful studio going forward.”