Back in early August we reported that Spyglass Entertainment’s co-heads Gary Barber and Roger Birnbaum were close to a deal to run MGM studios. A deal has apparently been struck now as Barber and Birnbaum have both signed a nonbinding letter of intent to take over management of the studio. To finalize the deal MGM’s debt holders and board of directors will have to approve it. Looking ahead it’s been reported that the co-heads of Spyglass have already had talks with Hollywood executive Ken Schapiro about becoming MGM’s chief operating officier.
Once the deal is approved MGM will enter into a prepackaged bankruptcy sometime around the 15th of September when their latest debt waiver expires. This process should last approximately two months. Under the deal reported in August MGM’s creditors will forgive the studio’s $4 billion debt in exchange for the bulk of the restructured studio’s new equity.
