MGM creditors ‘back bankruptcy deal with Spyglass’

Metro-Goldwyn-Mayer logo Creditors of Hollywood’s legendary MGM studio have voted in favour of a bankruptcy plan offered by US firm Spyglass Entertainment, sources say.

The rescue deal would put Spyglass at the helm of MGM, which has $4bn (£2.5bn) in outstanding debt.

The creditors rejected a rival offer from Canada’s Lionsgate company, the sources said.

MGM, which has the James Bond franchise, is in debt thanks to several box office flops and a DVD sales slump.

The rescue plan provides for MGM’s secured lenders to exchange $4bn in debt for equity in the company upon its emergence from Chapter 11.

The trimmed-down company would then be taken over by Spyglass’s bosses.

The financial rescue of MGM is key to the production of several movie blockbusters.

The next James Bond film is just one example of a project that is on hold pending a deal.