MGM files for bankruptcy

By Julianne Pepitone, staff reporter

NEW YORK ( -- MGM has filed for Chapter 11 bankruptcy protection as part of a "pre-packaged" plan with creditors, the movie studio said Wednesday.

In court papers filed in New York, the movie studio behind "Rocky:" and the James Bond movies said its bankruptcy should last only about 30 days.

Under the terms of the deal, major lenders Credit Suisse and JPMorgan (JPM, Fortune 500) will exchange $4 billion in outstanding debt for most of MGM's equity when it emerges from Chapter 11 protection.

MGM will then be transferred to the control of Gary Barber and Roger Birnbaum, who run the movie company Spyglass Entertainment.

MGM has also agreed to a deal with Carl Icahn, one of its largest shareholders, in exchange for the billionaire investor's support in its restructuring. Icahn had previously pushed for MGM to merge with another studio, Lions Gate Entertainment.

In a prepared statement, MGM executives said the studio "is emerging from one of the most challenging periods of its storied history."

The company said it expects to raise $500 million after emerging from bankruptcy to finance projects including the production of films and TV series. To top of page

Index Last Change % Change
Dow 24,946.51 72.85 0.29%
Nasdaq 7,481.99 0.25 0.00%
S&P 500 2,752.01 4.68 0.17%
Treasuries 2.85 0.02 0.78%
Data as of 8:17pm ET
Company Price Change % Change
Chesapeake Energy Co... 3.06 0.04 1.32%
General Electric Co 14.31 -0.05 -0.35%
Bank of America Corp... 32.17 0.07 0.22%
Ford Motor Co 11.15 0.08 0.72%
Micron Technology In... 60.58 1.74 2.96%
Data as of Mar 16


The European Union has published a long list of American products that it could target if President Donald Trump moves forward with new tariffs on steel and aluminum. More

"It's like competing in an Olympic race wearing lead shoes," Elon Musk, referring to trade rules with China, tweeted to President Donald Trump. More

Good news for procrastinators: You get two extra days to file your federal income taxes. April 15 falls on a weekend and April 16 is a public holiday in the District of Columbia. More