<![CDATA[Despite the best efforts of investor Carl Icahn MGM creditors have voted on a reorganization plan that moves the company into Chapter 11 bankruptcy.
It remains to be seen what if any trouble Icahn may cause.
Metro-Goldwyn-Mayer Inc. (“MGM”) today announced that the secured lenders voting in the Company’s solicitation process have overwhelmingly approved its proposed plan of reorganization (“Plan”). MGM will now move expeditiously to implement that Plan, which will dramatically reduce its debt load and put the Company in a strong position to execute its business strategy. MGM is appreciative of the lenders’ support.
“The vote came after Icahn had made two separate offers to buy up MGM debt in order to merge the company with Lionsagte, a studio where he is the majority shareholders. Icahn’s offers would have given him a 51% share of MGM and the heft to force the merger.
But yesterday Lionsgate sued Icahn in New York Federal Court claiming he had been playing a “double game” with Lionsgate and MGM. Icahn had initially resisted Lionsgate’s efforts to merge with the company. He later came out in full support.
No word on whether the lawsuit was the final straw for debt holders who were concerned that Icahn could not be trusted with MGM, which owns the rights to the James Bond franchise and the upcoming film version of The Hobbit.
Does this mean Icahn will go away and quietly lick his wounds? Don’t count on it. The shareholder agitator seems to constantly be looking for a fight and he always seems to find new ways to try and get what he wants.”