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MGM Debt Resolution Planned

Classic MGM Logo
© MGM

The light could be coming to an end of MGM's bankruptcy tunnel, with the Hollywood Reporter saying more than 100 holders of almost $4 billion in MGM have agreed to a seventh debt forbearance agreement which will exchange $450 million of debt for equity. Spyglass Entertainment is looking like the hero here with the company becoming a 5% stakeholder in MGM as part of the plan, with Spyglass co-toppers Gary Barber and Roger Birnbaum to be installed as co-chairmen and co-CEOs.

MGM thanked lenders on Wednesday for the latest debt forbearance agreement.

"The lenders took this action in support of the company's ongoing efforts to evaluate long-term strategic alternatives to maximize value for its stakeholders," MGM said. "MGM appreciates the continued support of its lender group throughout this process."

The potential resolution of the cash-strapped studio will unleash some genre properties onto the release slate, with pre-production for The Hobbit and the next James Bond adventure on hold indefinitely until this is worked out. Other high-profile MGM projects have likewise been put in holding patterns even with casts locked in and production in the can. Their Red Dawn remake was recently taken out of its November 26 release while Joss Whedon's Cabin in the Woods was taken off its January 14 release.