MGM studio prepares for prepackaged bankruptcy

** FILE** The Metro-Goldwyn-Mayer logo graces the entrance gates at their Santa Monica, Calif., offices July 23, 2002. A bidding war has broken out for Metro-Goldwyn-Mayer, with Time Warner Inc. making a nearly $5 billion offer for the venerable Hollywood studio, according to newspaper reports Thursday, July 1, 2004. Sony Corp. has also tendered an offer to purchase Metro-Goldwyn-Mayer. (AP Photo/Nick Ut)

October 8, 2010 1:26:56 PM PDT
Metro-Goldwyn-Mayer Inc. said Thursday that it has begun seeking its creditors' approval on a prepackaged bankruptcy plan in which they will exchange more than $4 billion in debt for equity in a new company that has rights to the James Bond franchise and the upcoming two-part movie series "The Hobbit."