MGM increases secured lender stock distribution under amended plan

By Caroline Salls

Pittsburgh, Nov. 24 - Metro-Goldwyn-Mayer Inc. filed an amended plan of reorganization Wednesday with the U.S. Bankruptcy Court for the Southern District of New York.

Under the amended plan, MGM's secured lenders would exchange more than $4 billion of outstanding debt for 99.46% of the equity of the reorganized company, up from 95.3% under the original plan.

In addition, Spyglass Entertainment would contribute assets to the reorganized company in exchange for 0.54% of the equity, up from 0.52% under the original plan.

Treatment of creditors will include:

• Holders of administrative claims, priority tax claims and non-tax priority claims will be paid in full in cash;

• Other secured claims will either be reinstated, holders will be paid in full in cash or will receive the collateral securing the claim;

• Holders of credit agreement claims will receive a share of 99.46% of the new common stock in the reorganized company;

• P&A facility claims will be reinstated;

• Holders of general unsecured claims will be paid in full in cash;

• Interests in subsidiary debtors will be reinstated; and

• Holders of holding company interests will receive no distribution.

MGM, a Los Angeles-based motion picture, television, home video and theatrical production and distribution company, filed for bankruptcy on Nov. 3. The Chapter 11 case number is 10-15774.

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