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MGM Studios Files Bankruptcy, Rejecting Icahn Bid

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Metro-Goldwyn-Mayer Inc., distributor of the James Bond and Rocky movies, filed for bankruptcy in Manhattan federal court after rejecting a takeover bid by Lions Gate Entertainment Corp. and billionaire Carl Icahn.

The Los Angeles-based studio, which foundered after piling on debt to go private, filed a Chapter 11 petition today in U.S. Bankruptcy Court. About 80 percent of its creditors support a so-called pre-packaged plan to extinguish about $4 billion of debt and install managers from Spyglass Entertainment Group Inc., the producers of “The Sixth Sense.” Like Tribune Co. and the former Chrysler LLC, 86-year-old MGM filed for bankruptcy after a leveraged buyout.