LOS ANGELES (CelebrityAccess MediaWire) — Metro-Goldwyn-Mayer Inc. 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 an 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. – Melissa Kohn