MGM extends solicitation for pre-packaged plan of reorganization

New York, Oct. 15 - Metro-Goldwyn-Mayer Inc. has extended its solicitation of votes from its secured lenders for a pre-packaged plan of reorganization, according to a company news release.

The new deadline is 5 p.m. ET on Oct. 29, pushed back from the original Oct. 22.

MGM said the additional time is to allow lenders time to review a supplement distributed Friday with additional details about the company's financial condition.

The solicitation was announced on Oct. 7. MGM said at the time that it expects to continue normal business operations throughout the restructuring process.

Under the plan, MGM's secured lenders would exchange more than $4 billion in outstanding debt for 95.3% of equity in the reorganized company.

In addition, Spyglass Entertainment would contribute assets to the reorganized company in exchange for 0.52% of the equity.

Two entities owned by Spyglass affiliates - Cypress Entertainment Group, Inc. and Garoge, Inc. - will merge with a subsidiary of MGM, with the MGM subsidiary as the surviving entity.

According to the release, the stockholders of Cypress and Garoge will receive 4.17% of the reorganized company in exchange.

Gary Barber and Roger Birnbaum, currently co-chairman and chief executive officer of Spyglass Entertainment, would serve as the co-chairman and CEO of MGM following the company's emergence from Chapter 11.

The company said it will make a pre-packaged Chapter 11 bankruptcy filing following the receipt of required consents from secured lenders during the plan solicitation period.

Only holders of secured debt as of Oct. 4 under MGM's April 8, 2005 credit agreement will be solicited.

MGM is a Los Angeles-based motion picture, television, home video and theatrical production and distribution company.

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