MGM has filed in U.S. Bankruptcy Court in New York a financial-reorganization plan naming Spyglass Entertainment co-toppers Gary Barber and Roger Birnbaum as co-CEOs of the Century City studio. The “prepackaged” Chapter 11 bankruptcy plan was approved last week by more than 100 MGM lenders, who agreed to swap $4 billion in debt holdings for a collective 99% stake in the Century City studio. The final terms contain certain changes demanded by investor Carl Icahn, a big MGM debtholder. Court review of the plan is expected to take 30 days. Icahn will end up with a sizable stake once his $400 million-plus in Lion debt is converted to equity. He also had been backing a rival MGM restructuring plan involving a proposed merger of MGM and Lionsgate, in which he also is a major investor with a stake of abut 30%.
http://www.hollywoodreporter.com/news/mgm-files-chapter-11-bankruptcy-35088