* Spyglass chiefs Barber, Birnbaum to run MGM-WSJ
* MGM to seek prepackaged bankruptcy in mid-September-WSJ
NEW YORK Aug 10 (Reuters) - Spyglass Entertainment is
nearing an agreement to run Metro-Goldwyn-Mayer Inc once the
film studio restructures $4 billion of debt this summer through
the bankruptcy process, the Wall Street Journal said on
Tuesday, citing people familiar with the matter.
An agreement could come as soon as this week, valuing MGM
at about $1.9 billion, the newspaper said, citing the sources.
The sources also said MGM hopes to file a prepackaged
bankruptcy in mid-September when its latest debt waiver
expires, according to the Journal.
MGM creditors have spent the better part of a week with
Spyglass co-heads Gary Barber and Roger Birnbaum negotiating
the makeup of a board, and have worked out financial details,
the newspaper said.
Barber and Birnbaum would run MGM as co-chief executives,
and Spyglass would receive a 4 percent stake in a reorganized
MGM, the newspaper said.
Creditors would forgive all MGM debt in return for the bulk
of the restructured studio's equity, the newspaper said, citing
the sources. MGM hopes to limit its Chapter 11 reorganization
process to about two months, the newspaper said.
MGM creditors have left open the possibility of pairing
with other studio rivals, including Lions Gate Entertainment
Corp (LGF.N) and Summit Entertainment, which have made recent
overtures, the newspaper said, citing the sources.
The creditors would have to relinquish one-fourth to
one-half of the new studio's equity in transactions with Lions
Gate or Summit, the newspaper said.
Watch Entertainment News Online
* MGM to seek prepackaged bankruptcy in mid-September-WSJ
NEW YORK Aug 10 (Reuters) - Spyglass Entertainment is
nearing an agreement to run Metro-Goldwyn-Mayer Inc once the
film studio restructures $4 billion of debt this summer through
the bankruptcy process, the Wall Street Journal said on
Tuesday, citing people familiar with the matter.
An agreement could come as soon as this week, valuing MGM
at about $1.9 billion, the newspaper said, citing the sources.
The sources also said MGM hopes to file a prepackaged
bankruptcy in mid-September when its latest debt waiver
expires, according to the Journal.
MGM creditors have spent the better part of a week with
Spyglass co-heads Gary Barber and Roger Birnbaum negotiating
the makeup of a board, and have worked out financial details,
the newspaper said.
Barber and Birnbaum would run MGM as co-chief executives,
and Spyglass would receive a 4 percent stake in a reorganized
MGM, the newspaper said.
Creditors would forgive all MGM debt in return for the bulk
of the restructured studio's equity, the newspaper said, citing
the sources. MGM hopes to limit its Chapter 11 reorganization
process to about two months, the newspaper said.
MGM creditors have left open the possibility of pairing
with other studio rivals, including Lions Gate Entertainment
Corp (LGF.N) and Summit Entertainment, which have made recent
overtures, the newspaper said, citing the sources.
The creditors would have to relinquish one-fourth to
one-half of the new studio's equity in transactions with Lions
Gate or Summit, the newspaper said.
Watch Entertainment News Online
