NEW YORK
Billionaire investor Carl Icahn on Tuesday made a second offer to buy debt from the lenders of financially struggling film studio Metro-Goldwyn-Mayer, in an attempt to stave off a combination with Spyglass Entertainment.
Icahn is offering to buy up to $1.6 billion in principal amount of MGM senior secured notes until Friday, which is also the deadline for MGM creditors to decide whether they want to accept a prepackaged bankruptcy plan that would give 5 percent of the company to Spyglass. Privately held MGM has more than $4 billion of debt.
Icahn supports a competing offer from Lions Gate Entertainment Corp. to combine with MGM. Icahn owns stakes in both companies.
Icahn is offering 53 cents per dollar of face amount of MGM notes.
Last week, Icahn offered MGM creditors "put options," or rights to sell their notes to him for 45 cents on the dollar. In exchange, they must vote against the Spyglass plan and grant him a proxy to Icahn. That offer still stands.
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