MGM files for Chapter 11

Wednesday's move is part of the financially strapped film studio's reorganization plan.

"For many months, we have been working with our lenders to explore the strategic options available to MGM to improve MGM's financial position and maximize the company's value," MGM Co-Chief Executive Officer Steve Cooper said in a statement. "By sharply reducing MGM's debt load and providing access to new capital, the proposed plan of reorganization achieves these goals. Having received approval through our recently completed solicitation process, we are pleased that the lenders support MGM's approach. We now look forward to quickly emerging from Chapter 11."

Gary Barber and Roger Birnbaum, co-chairman and chief executive officer of Spyglass Entertainment, will serve as co-chief executive officer of MGM Holdings Inc. and as co-chairman and co-chief executive officer of the primary operating subsidiary of MGM Holdings Inc. respectively, MGM said.

"MGM is emerging from one of the most challenging periods of its storied history," Barber and Birnbaum said in a joint statement.

"We are honored and inspired at the prospect of leading one of Hollywood's most iconic studios into its next generation of unforgettable film-making, global television production and distribution, and aggressively pursuing, developing and exploiting new digital entertainment platforms."

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