MGM, home of such classic franchises as the James Bond and Pink Panther series, will be entering a pre-packaged bankruptcy rather than a merger with Lionsgate. MGM shareholders overwhelmingly elected a Chapter 11 filing wherein 95.3% of the studio will be controlled by senior debt holders.
The protracted struggle for MGM’s future has not been without controversy, as billionaire investor Carl Icahn—a major MGM stakeholder—was sued last week by Lionsgate for allegedly manipulating the potential merger for personal gain.
Icahn’s lawyers must surely be busy, as he is also in hot water for alleged collusion with Blockbuster CEO Jim Keyes in the months leading up to BB’s bankruptcy.
There’s no doubt that there are plenty of bankruptcies to go around in Hollywood these days. It will be interesting to watch how the new MGM (and Blockbuster, for that matter) attempt to become profitable. It will also be interesting to see what happens with Icahn and the multiple allegations of wrongdoing he has to deal with.
We’ll keep you updated, as always. Feel free to visit the comments section and weigh in with your opinion in the meantime.
(via Home Media Magazine)