4 Dec 2010

MGM about to emerge from bankruptcy

1:06 pm on 4 December 2010

Metro-Goldwyn-Mayer has entered the final act of its reorganisation after winning court approval to emerge from bankruptcy with new owners.

US bankruptcy judge Stuart Bernstein approved the Hollywood studio's restructuring plan at a hearing in Manhattan.

MGM lawyer Jay Goffman says the studio expects to emerge from bankruptcy in a few weeks.

Founded in 1924, the studio filed for bankruptcy on 3 November after agreeing with creditors on a restructuring in which it will shed about $US5 billion in debt and hand control to its secured lenders.

MGM was sold in a $US2.85 billion leveraged buyout to a group of private equity firms.

The studio will be managed by Spyglass Entertainment.