Article first published as Metro-Goldwyn-Mayer Inc. Files for Bankruptcy on Technorati.
MGM studios in Hollywood filed for bankruptcy Wednesday as part of a plan to restructure its finances and shed more than $4 billion in debt. The Hollywood entertainment company is the distributor of the James Bond and Rocky movies. Metro-Goldwyn-Mayer Inc. has planned a prepackaged bankruptcy that should shorten its stay in Chapter 11 protection.
The studio is set to merge with Spyglass Entertainment Group Inc., the producers of “The Sixth Sense”. The merger would hand control over to a group of hedge fund creditors. The Los Angeles based studio has rejected a takeover bid by Lions Gate Entertainment Corp and billionaire Carl Icahn. After the failed bid Icahn has reportedly come to agreement with MGM according which he will have a right to elect a director to MGM’s board after the bankruptcy. The petition may be approved in 30 days by the Manhattan federal court, MGM was quoted as saying.
MGM’s most valuable property, production of the 23rd installment of the ongoing 007 series ground to a halt after the studio faced financial difficulties. MGM owns half of the Bond-23 and subsequent movies would wholly be owned by the company. MGM was founded in 1924 whose logo is a roaring lion, a well-known logo for Hollywood movies. Along with Bond movies the company produced all-time great movies like Ben-Hur and Pink Panther.