THE creditors behind MGM studios have voted in favour of a new deal which puts Spyglass Entertainment at the helm.
The deal will enable the Hollywood filmmaker to proceed with the production of the latest James Bond film, which had been mothballed due to failure to secure a sale of the studio.
More than half of MGM’s individual debt holders voted to approve the Spyglass plan that will place the US firm’s co-founders Gary Barber and Roger Birnbaum as co-chief executives of MGM. The creditors rejected a rival offer from Canadian film producer Lionsgate, owned by billionaire Carl Icahn who already has an $800m (£499m) stake in MGM’s debts.
MGM had been struggling with $4bn (£2.5bn) debts due to poor box office returns and a slump in DVD sales. The deal allows lenders to restructure the deficit and exchange $4bn in debt for equity in the company upon its emergence from Chapter 11 bankruptcy.
Under new direction from Spyglass, MGM will look to produce fewer big budget films in order to put the studio on a secure financial footing.
MGM said in a statement that creditors had “overwhelmingly approved its proposed plan of reorganisation” under the Spyglass deal.
Securing an agreement for the struggling studio will mean that production of several big budget films, including the 23rd James Bond picture, can resume.