MGM studio seeks court OK for $500 million exit financing

BANGALORE (BestGrowthStock) – Metro-Goldwyn-Mayer Studios Inc sought bankruptcy court approval for a $500 million loan to facilitate its emergence from Chapter 11.

The financing consists of a six-year term loan facility and a five-year revolving facility and will be used to finance the company’s reorganization plan.

MGM appointed JPMorgan Chase Bank to arrange the loan, according to a court filing, and asked the court for permission to keep confidential the fees payable for the loan.

The company filed a prepackaged bankruptcy earlier this month to shed more than $4 billion of debt.

The case is In re: Metro-Goldwyn-Mayer Studios Inc, U.S. Bankruptcy Court, Southern District of New York, No. 10-15774.

(Reporting by Santosh Nadgir in Bangalore; Editing by Unnikrishnan Nair)

MGM studio seeks court OK for $500 million exit financing