MGM has told debtholders that it will delay the vote to approve a prepackaged bankruptcy plan that calls for the company to be taken over by the management of Spyglass Entertainment, The Post has learned.
The studio’s board will push back the vote to Oct. 29 from Oct. 22, giving bondholders more time to consider a rival merger proposal from Lionsgate and its largest shareholder, Carl Icahn.
The move comes after MGM debtholder Franklin Templeton sent a letter asking for a three-week delay so bondholders could consider the Lionsgate proposal.
MGM has defaulted on its $4 billion in debt, and creditors are fighting over who will repossess the business. It needs two-thirds of its 100 debtholders to approve the deal.