AP source: MGM creditors OK Spyglass deal

October 29, 2010 7:21:34 PM PDT
A person familiar with the matter says creditors of struggling Hollywood studio Metro-Goldwyn-Mayer have voted to approve a merger with Spyglass Entertainment with the backing of billionaire investor Carl Icahn.

The person was not authorized to speak publicly and spoke on condition of anonymity.

The person said that Icahn, a significant holder of MGM's debt, voted for the Spyglass plan even though he had publicly supported a rival bid from Lions Gate Entertainment Corp., in exchange for representation on MGM's board.

More than half of the creditors, holding more than two-thirds of the $4 billion in debt outstanding, needed to support the plan.