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Hollywood's MGM Studio Goes Bankrupt

MGM Tower is in the Century City section Los Angeles, California. According to reports Metro- Goldwyn-Mayer's creditors voted to send the studio into bankruptcy court, 29 Oct 2010.

The Hollywood movie studio that produced well-known films like the James Bond series and "The Wizard of Oz" has filed for bankruptcy.

For decades, MGM has been making films that begin with the distinctive picture and sound of a lion roaring.

The studio is to be restructured and given new leadership, but it will continue making movies. Executives from a rival film company, Spyglass Entertainment, will now run MGM.

The creditors included billionaire Carl Icahn, who was pressing for a different company to take over the failing studio. After lengthy negotiations, the creditors agreed to exchange about $4 billion in debt for shares in the new company.

The studio was hurt by some expensive films that sold too few tickets to make a profit, slumping sales of DVDs, and a heavy debt burden.

Some information in this story was provided by AP.