Hollywood film studio Metro Goldwyn Mayer has begun plans to file for bankruptcy protection in an effort to rid itself of $4bn (ÂŁ2.5bn) of debts. The studio is asking more than 100 of its creditors to approve a plan that will see it enter chapter 11 bankruptcy while it restructures.
Creditors will get a 95% stake in the company as part of the deal. MGM said it would continue to operate as normal during the bankruptcy procedures.
The plans follow months of speculation over the future of MGM, which has struggled with large debts, a lack of blockbuster film releases, and a downturn in DVD sales.
Earlier this year, the studio put itself up for sale, but failed to find suitable bidders.