MGM Proposes Bankruptcy Package
MGM said it is seeking lenders' votes for the plan, which would involve secured lenders exchanging more than $4 billion in debt for 95.3% of equity in the company once it emerges from Chapter 11, Reuters reported.
The studio has struggled with debt after a $2.85 billion buyout in 2005. The group leading the buyout included media company Sony Corp. (SNE) and private equity company Providence Equity Partners.
The company's secured lenders have until Oct. 22 to vote on the plan.