MGM names Barber, Birnbaum to top spots (DH, THR, LAT)

By Nancy Tartaglione

MGM on Thursday confirmed it has formally named Spyglass partners Gary Barber and Roger Birnbaum as its new co-chairman and CEO. The studio issued a press release also saying it had begun "a solicitation of votes from its secured lenders for a pre-packaged plan of reorganization." Deadline notes that one issue not addressed is whether the studio will be revived as an entity that strips off its distribution and marketing arms. What is clear, says Deadline, is that Mary Parent is one step closer to the exit.

Throughout the restructuring, MGM said it expects to continue normal business operations.

Under the plan, MGM's secured lenders would exchange more than $4 billion in outstanding debt for approximately 95.3% of equity upon the studio's emergence from Chapter 11. Spyglass would contribute certain assets in exchange for approximately .52% of the reorganized company.

In addition, two entities owned by Spyglass affiliates, Cypress Entertainment Group and Garoge, will merge with and into a subsidiary of MGM. The stockholders of Cypress and Garoge will receive approximately 4.17% of the reorganized company in exchange. A number of Spyglass' 30 employees will likely join Barber and Birnbaum at MGM, says The Los Angeles Times.

The deadline for MGM's lenders to vote on the plan is October 22, unless extended. Insiders predict easy passage of the plan, says The Hollywood Reporter.

According to the LAT, people close to the situation say MGM's leadership faces intense pressure to reach a resolution by the time a seventh debt forbearance expires Oct. 29.