It’s been a tiresome year for the boys and girls over at MGM, with financial problems (to say the least) stalling some very hotly awaited films but it looks like their troubles are all over — at last! And not a moment to soon, as fans of the impending Hobbit films and the 23rd Bond film will be glad to hear that they are officially out of bankruptcy!
The previously towering-in-debt company now has $500 million in its name to finance future film and television projects — including the hotly awaited Hobbit films, and the recently announced as in-motion 23rd Bond can now go ahead…without the dead weight.
Deadline got their hot little hands on a press release, announcing that the restructuring plan has been put into effect and will see the company leaving bankruptcy with a hefty sum — at least enough to say that Metro Goldwyn and Mayer is back in business. Don’t expect anything any time soon , as they still ahve to pick-up the many pieces from the last year of uncertainty. So thats it from me, check out the press release below — and I hope you can celebrate with me on the subject matter, and wish MGM a happy and plentiful new year!!
“LOS ANGELES, CA, December 20, 2010 – Metro-Goldwyn-Mayer Inc. today announced that the company’s restructuring has become effective, with exit financing of $500 million in place. The company’s “pre-packaged” plan of reorganization (the “Plan”) was confirmed on December 2, 2010, by the U.S. Bankruptcy Court for the Southern District of New York.
“MGM is emerging from one of the most challenging periods of its storied history. We are honored and inspired at the opportunity of leading one of Hollywood’s most iconic studios into its next generation of unforgettable filmmaking, global television production and distribution, and aggressively pursuing, developing and exploiting new digital entertainment platforms,” said Gary Barber and Roger Birnbaum, Co-Chairmen and Chief Executive Officers of MGM. “Beginning today, MGM is a stronger, more competitive company, with a solid financial foundation and a bright future. We look forward to working with MGM’s dedicated employees to build upon this company’s legacy.”
MGM has a significantly improved financial position with secured lenders exchanging approximately $5 billion, including accrued interest and fees, for most of the equity in the company. As part of its exit financing, MGM raised $500 million to fund operations, including production of a new slate of films and television series. JPMorgan arranged MGM exit financing.“