- Associated Press - Thursday, October 7, 2010

LOS ANGELES (AP) - Metro-Goldwyn-Mayer Inc. says it has begun sending out ballots to its more than 100 creditors seeking approval of a pre-packaged bankruptcy that would have them exchange more than $4 billion in debt for equity in most of the new company.

Privately held production company Spyglass Entertainment will contribute some assets and merge two subsidiaries into MGM for a 4.69 percent stake in the company.

Creditors would hold 95.3 percent of the company after it exits from Chapter 11.

After exiting bankruptcy, Spyglass co-founders Gary Barber and Roger Birnbaum will serve as co-chairmen and CEOs of the company.

The move caps a process that began late last year as the company struggled to right itself from a dearth of hit movies, the decline of DVD sales and an overwhelming debt burden.