disclosure statement metro-goldwyn-mayer studios inc. and certain of its affiliates

496 Pages·2010·2.3 MB·English

Metro-Goldwyn-Mayer Studios Inc. and certain of its affiliates (collectively, the "Debtors") are sending you
this disclosure statement (the "Disclosure Statement") because you may be a creditor entitled to vote on the
Joint Prepackaged Plan of Reorganization of Metro-Goldwyn-Mayer Studios Inc. and certain of its Affiliates
(the "Plan"). This solicitation (the "Solicitation") of votes is being conducted to obtain sufficient acceptances
of the Plan prior to the filing of voluntary cases under chapter 11 of title 11 of the United States Code (the
"Bankruptcy Code"). If sufficient votes to obtain confirmation of the Plan are received and certain other
conditions are met, the Debtors intend to file voluntary cases under chapter 11 of the Bankruptcy Code to
implement the Plan. Because no chapter 11 cases have yet been commenced, this Disclosure Statement has
not been approved by any Bankruptcy Court as containing "adequate information" within the meaning of
section 1125(a) of the Bankruptcy Code. Following the commencement of their chapter 11 cases, the Debtors
expect to seek promptly an order of the Bankruptcy Court (1) approving (a) this Disclosure Statement as
having contained "adequate information" and (b) the Solicitation as having been in compliance with Section
1125(b) of the Bankruptcy Code, and (2) confirming the Plan described herein.

DISCLOSURE STATEMENT
DATED OCTOBER 7, 2010
PREPETITION SOLICITATION OF VOTES
WITH RESPECT TO JOINT PREPACKAGED PLAN OF REORGANIZATION

OF
METRO-GOLDWYN-MAYER STUDIOS INC. AND CERTAIN
OF ITS AFFILIATES

SPECIAL NOTICE REGARDING FEDERAL AND STATE SECURITIES LAWS

Neither this Disclosure Statement nor the Plan has been filed with or reviewed by the Bankruptcy Court, and
the securities to be issued on or after the Effective Date (as defined below) are not the subject of a registration
statement filed with the United States Securities and Exchange Commission (the "SEC") under the United
States Securities Act of 1933, as amended (the "Securities Act"), or any securities regulatory authority of any
state under any state securities law ("Blue Sky Law"). The Debtors are relying on section 4(2) of the
Securities Act and similar provisions of state securities law, as well as, to the extent applicable, the exemption
from the Securities Act and equivalent state law registration requirements provided by section 1145(a)(1) of
the Bankruptcy Code, to exempt from registration under the Securities Act and Blue Sky Law the offer and
sale of new securities in connection with the Solicitation and the Plan.

Each holder of a Credit Agreement Claim (as defined in the Plan) or authorized signatory for the beneficial
owner of a Credit Agreement Claim will be required to certify on its Ballot whether such holder or beneficial
owner is an Accredited Investor, as that term is defined by Rule 501 of Regulation D of the Securities Act.

The Plan has not been approved or disapproved by the SEC or any state securities commission and neither
the SEC nor any state securities commission has passed upon the accuracy or adequacy of the information
contained herein. Any representation to the contrary is a criminal offense. Neither the Solicitation nor this
Disclosure Statement constitutes an offer to sell, or the solicitation of an offer to buy securities in any state or

jurisdiction in which such offer or solicitation is not authorized.
This Disclosure Statement and the information set forth herein are confidential. This Disclosure Statement
contains material non-public information concerning the Debtors, their subsidiaries, and their respective
securities. Each recipient hereby acknowledges that it (a) is aware that the federal securities laws of the
United States prohibit any person who has material non-public information about a company, which is
obtained from the company or its representatives, from purchasing or selling securities of such company or
from communicating the information to any other person under circumstances in which it is reasonably
foreseeable that such person is likely to purchase or sell such securities and (b) is familiar with the United
States Securities Exchange Act of 1934, as amended (the "Securities Exchange Act"), and the rules and
regulations promulgated thereunder, and agrees that it will not use or communicate to any person, under
circumstances where it is reasonably likely that such person is likely to use or cause any person to use, any
confidential information in contravention of the Securities Exchange Act or any of its rules and regulations,
including Rule 10b-5.

THE VOTING DEADLINE TO ACCEPT OR REJECT THE JOINT PREPACKAGED PLAN OF
REORGANIZATION OF METRO-GOLDWYN-MAYER STUDIOS INC. AND CERTAIN OF ITS
AFFILIATES IS 5:00 P.M. PREVAILING EASTERN TIME ON OCTOBER 22, 2010, UNLESS
EXTENDED BY THE DEBTORS (THE "VOTING DEADLINE"). THE RECORD DATE FOR
DETERMINING WHETHER A HOLDER OF AN IMPAIRED CLAIM IS ENTITLED TO VOTE ON THE
PLAN IS OCTOBER 4, 2010 (THE "VOTING RECORD DATE").

THE DEBTORS ARE FURNISHING THIS DISCLOSURE STATEMENT TO EACH MEMBER OF AN
IMPAIRED CLASS UNDER THE JOINT PREPACKAGED PLAN OF REORGANIZATION OF METRO-
GOLDWYN-MAYER STUDIOS INC. AND CERTAIN OF ITS AFFILIATES. THIS DISCLOSURE
STATEMENT IS TO BE USED BY EACH RECIPIENT SOLELY IN CONNECTION WITH HIS, HER, OR
ITS EVALUATION OF THE PLAN, AND USE OF THIS DISCLOSURE STATEMENT FOR ANY OTHER
PURPOSE IS NOT AUTHORIZED. WITHOUT THE PRIOR WRITTEN CONSENT OF THE DEBTORS,
THIS DISCLOSURE STATEMENT MAY NOT BE REPRODUCED OR PROVIDED TO OTHERS
(OTHER THAN THOSE ADVISORS OF ANY RECIPIENT OF THIS DISCLOSURE STATEMENT WHO
MAY REVIEW THE INFORMATION CONTAINED HEREIN TO ASSIST SUCH RECIPIENT IN HIS,
HER, OR ITS EVALUATION OF THE PLAN).

Prepared by:
Klee, Tuchin, Bognanoff & Stern LLP
Skadden, Arps, Slate, Meagher & Flom LLP 1999 Avenue of the Stars
Four Times Square Thirty-Ninth Floor
New York, New York 10036 Los Angeles, California 90067
[phone] [phone]
Jay M. Goffman Kenneth N. Klee
Michael L. Tuchin
300 South Grand Avenue
Suite 3400 Proposed Counsel for Debtors and
Los Angeles, California 90071 Debtors in Possession
[phone]
Nick P. Saggese
Rick C. Madden
Glenn S. Walter
INTRODUCTION AND DISCLAIMER
Metro-Goldwyn-Mayer Studios Inc. ("MGM Studios") and its affiliated Debtors1 (collectively,
together with their non-Debtor affiliates the "Company" or "MGM") submit this Disclosure Statement to certain
holders of claims against the Debtors in connection with the Solicitation of acceptances of the proposed Joint
Prepackaged Plan of Reorganization of Metro-Goldwyn-Mayer Studios Inc. and Certain of Its Affiliates, dated as of
October 7, 2010 (a copy of which is annexed hereto as Appendix A). The Debtors are soliciting such acceptances
from holders of secured obligations under the Credit Agreement.2
Under the Plan, the Debtors propose to restructure their financial affairs, including the obligations
owed under the Credit Agreement. To effectuate the restructuring of such obligations, assuming the requisite votes
are obtained on the Plan, the Debtors will file for bankruptcy relief (and will concurrently or shortly thereafter file
the Plan) and will seek the necessary relief from the Bankruptcy Court to continue, in the ordinary course of
business, to pay their employees, trade vendors, and certain other creditors in full and on time. In furtherance of
their restructuring, the Debtors have entered into (or will be entering into) the Transaction Documents, which
include the Investment Agreement, the Stockholders Agreement, and the Registration Rights Agreement. Together,
the Plan and the Transactions Documents provide, inter alia, for (i) existing equity in Reorganized Holdings to be
cancelled, (ii) claims under the Credit Agreement to be converted into approximately 95.3% of the equity in
Reorganized Holdings, (iii) the contribution by Spyglass Entertainment Holdings, LLC ("Spyglass") of certain assets
to the Reorganized Company in exchange for 0.52% of the equity in Reorganized Holdings, and (iv) the merger of
Cypress Entertainment Group, Inc. ("Cypress") and Garoge, Inc. ("Garoge") with and into a special purpose direct
limited liability company subsidiary of Reorganized Holdings, with the Debtor affiliate as the surviving entity and
the C/G Stockholders receiving approximately 4.17% of the equity in Reorganized Holdings.
The Debtors are furnishing this Disclosure Statement to all holders of Credit Agreement Claims to
enable such claimholders to vote to accept or reject the Plan. The Disclosure Statement is to be used by holders of
Credit Agreement Claims solely in connection with their evaluation of the Plan. Use of this Disclosure Statement
for any other purpose is not authorized. This Disclosure Statement may not be reproduced or provided to anyone
other than advisors to the recipient without the prior written consent of the Debtors.
The Debtors intend to use any and all Ballots (as defined herein) accepting the Plan that were
received pursuant to the Solicitation and not subsequently withdrawn prior to the Voting Deadline (as defined herein)
to seek confirmation of the Plan. Votes in favor of the Plan may also be used by the Debtors as acceptances to any
modifications to the Plan provided such modifications do not materially and adversely affect the treatment of Credit
Agreement Claims. See Section IX.D — "Feasibility of the Plan and Best Interests of Creditors –
Confirmation Without Acceptance of All Impaired Classes: The 'Cramdown' Alternative."
This Disclosure Statement describes certain aspects of the Plan, the Company's operations, the
restructuring of the Company's financial affairs, the disposition of the Company's obligations with respect to the
Credit Agreement, the Company's post-restructuring management and other related matters. FOR A COMPLETE
UNDERSTANDING OF THE PLAN, YOU SHOULD READ THIS DISCLOSURE STATEMENT, THE PLAN,
AND THE APPENDICES AND EXHIBITS THERETO IN THEIR ENTIRETY. IN THE EVENT OF ANY
INCONSISTENCY BETWEEN THE PLAN AND THIS DISCLOSURE STATEMENT, THE TERMS OF THE
PLAN ARE CONTROLLING.
THE DEBTORS HAVE NOT COMMENCED CASES UNDER CHAPTER 11 OF THE
BANKRUPTCY CODE AT THIS TIME. BECAUSE NO BANKRUPTCY CASES HAVE BEEN
COMMENCED, THE INFORMATION CONTAINED IN THIS DISCLOSURE STATEMENT HAS NOT BEEN

1 A list of the Debtors is attached to the Plan as Exhibit B.
2 All capitalized terms not otherwise defined in this Disclosure Statement have the meanings ascribed to such
terms in the Plan, a copy of which is attached hereto as Appendix A.
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APPROVED BY ANY BANKRUPTCY COURT AS CONTAINING "ADEQUATE INFORMATION" WITHIN
THE MEANING OF SECTION 1125(a) OF THE BANKRUPTCY CODE. NONETHELESS, IF CHAPTER 11
CASES ARE SUBSEQUENTLY COMMENCED, THE DEBTORS INTEND TO SEEK PROMPTLY AN ORDER
OF THE BANKRUPTCY COURT APPROVING THIS DISCLOSURE STATEMENT PURSUANT TO SECTION
1125 OF THE BANKRUPTCY CODE AND DETERMINING THAT THE SOLICITATION OF VOTES ON THE
PLAN BY MEANS OF THIS DISCLOSURE STATEMENT COMPLIED WITH SECTION 1126(b) OF THE
BANKRUPTCY CODE.
THE DEBTORS INTEND TO CONTINUE OPERATING THEIR BUSINESSES IN CHAPTER
11 IN THE ORDINARY COURSE AND TO SEEK THE NECESSARY RELIEF FROM THE BANKRUPTCY
COURT TO PAY THEIR EMPLOYEES, TRADE VENDORS, AND CERTAIN OTHER CREDITORS IN FULL
AND ON TIME. THE CLAIMS OF THE DEBTORS' EMPLOYEES, GENERAL UNSECURED CREDITORS
(INCLUDING TRADE CREDITORS, LICENSORS, AND LESSORS), AND OTHER SECURED CREDITORS
OTHER THAN THOSE HOLDING CREDIT AGREEMENT CLAIMS ARE NOT IMPAIRED UNDER THE
PLAN.
THE CONFIRMATION AND EFFECTIVENESS OF THE PLAN ARE SUBJECT TO THE
SATISFACTION OR WAIVER OF MATERIAL CONDITIONS PRECEDENT, INCLUDING ALL
CONDITIONS PRECEDENT TO ENTERING INTO THE INVESTMENT AGREEMENT AND NEW CREDIT
FACILITY. THERE CAN BE NO ASSURANCE THAT THOSE CONDITIONS PRECEDENT WILL BE
SATISFIED.
THE DEBTORS CURRENTLY INTEND TO SEEK TO EFFECTUATE THE PLAN
PROMPTLY AFTER CONFIRMATION OF THE PLAN. THERE CAN BE NO ASSURANCE, HOWEVER, AS
TO WHEN AND WHETHER CONFIRMATION OF THE PLAN AND THE EFFECTIVE DATE ACTUALLY
WILL OCCUR. PROCEDURES FOR DISTRIBUTIONS UNDER THE PLAN, INCLUDING MATTERS THAT
ARE EXPECTED TO AFFECT (A) THE TIMING OF THE RECEIPT OF DISTRIBUTIONS BY HOLDERS OF
CLAIMS IN CERTAIN CLASSES AND (B) THE AMOUNT OF DISTRIBUTIONS ULTIMATELY RECEIVED
BY SUCH HOLDERS ARE DESCRIBED IN SECTION V — "SUMMARY OF THE PLAN OF
REORGANIZATION."
IF THE PLAN IS NOT CONFIRMED AND/OR EFFECTUATED, THEN THE DEBTORS
WILL HAVE TO CONSIDER ALL OF THEIR OPTIONS AS DEBTORS IN BANKRUPTCY. SEE SECTION X
— "ALTERNATIVES TO CONFIRMATION AND CONSUMMATION OF THE PLAN."
NO PERSON IS AUTHORIZED BY THE DEBTORS IN CONNECTION WITH THE PLAN
OR THE SOLICITATION TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATION
REGARDING THIS DISCLOSURE STATEMENT OR THE PLAN OTHER THAN AS CONTAINED IN THIS
DISCLOSURE STATEMENT AND THE APPENDICES ATTACHED HERETO OR INCORPORATED HEREIN
BY REFERENCE OR REFERRED TO HEREIN. IF SUCH INFORMATION OR REPRESENTATION IS GIVEN
OR MADE, IT MAY NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE DEBTORS.
THIS DISCLOSURE STATEMENT DOES NOT CONSTITUTE LEGAL, BUSINESS,
FINANCIAL, OR TAX ADVICE. ANY CREDITOR OR INTEREST HOLDER DESIRING ANY SUCH
ADVICE OR ANY OTHER ADVICE SHOULD CONSULT WITH ITS OWN ADVISORS.
THE INFORMATION CONTAINED IN THIS DISCLOSURE STATEMENT, INCLUDING
THE INFORMATION REGARDING THE COMPANY'S HISTORY, BUSINESS, AND OPERATIONS, IS
INCLUDED FOR PURPOSES OF SOLICITING ACCEPTANCES OF THE PLAN BUT, AS TO CONTESTED
MATTERS AND ADVERSARY PROCEEDINGS THAT MAY BE PENDING AS OF THE FILING OF THE
DEBTORS' CHAPTER 11 CASES OR COMMENCED AFTER THE FILING OF THE DEBTORS' CHAPTER 11
CASES, IS NOT TO BE CONSTRUED AS AN ADMISSION OR A STIPULATION BUT RATHER AS A
STATEMENT MADE IN SETTLEMENT NEGOTIATIONS.
THIS DISCLOSURE STATEMENT MAY NOT BE RELIED ON FOR ANY PURPOSE OTHER
THAN TO DETERMINE WHETHER TO VOTE TO ACCEPT OR TO REJECT THE PLAN, AND NOTHING
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STATED HEREIN CONSTITUTES AN ADMISSION OF ANY FACT OR LIABILITY BY ANY PARTY, OR
BE ADMISSIBLE IN ANY PROCEEDING INVOLVING THE COMPANY OR ANY OTHER PARTY, OR BE
DEEMED A REPRESENTATION OF THE TAX OR OTHER LEGAL EFFECTS OF THE PLAN ON THE
COMPANY OR HOLDERS OF CLAIMS OR INTERESTS. CERTAIN OF THE STATEMENTS CONTAINED
IN THIS DISCLOSURE STATEMENT, BY THEIR NATURE, ARE FORWARD-LOOKING AND CONTAIN
ESTIMATES AND ASSUMPTIONS. THERE CAN BE NO ASSURANCE THAT SUCH STATEMENTS WILL
BE REFLECTIVE OF ACTUAL OUTCOMES. ALL HOLDERS OF CREDIT AGREEMENT CLAIMS SHOULD
CAREFULLY READ AND CONSIDER THIS DISCLOSURE STATEMENT AND THE PLAN IN THEIR
ENTIRETY, INCLUDING SECTION VI — "RISK FACTORS TO BE CONSIDERED," BEFORE VOTING
TO ACCEPT OR REJECT THE PLAN.
Except with respect to the "Financial Projections" attached hereto as Appendix C and except as
otherwise specifically and expressly stated herein (including with respect to the pleadings the Debtors expect to file
in the Chapter 11 Cases), this Disclosure Statement does not reflect any events that may occur subsequent to the date
hereof and that may have a material impact on the information contained in this Disclosure Statement. Accordingly,
the delivery of this Disclosure Statement will not, under any circumstance imply that the information herein is
correct or complete as of any time subsequent to the date hereof.
EXCEPT AS OTHERWISE EXPRESSLY SET FORTH HEREIN, ALL INFORMATION
CONTAINED HEREIN HAS BEEN PROVIDED BY THE DEBTORS.
UNLESS SPECIFICALLY NOTED, THE FINANCIAL INFORMATION CONTAINED
HEREIN HAS NOT BEEN AUDITED BY A CERTIFIED PUBLIC ACCOUNTING FIRM.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS: This Disclosure
Statement contains certain forward-looking statements, all of which are based on various estimates and assumptions.
Such forward-looking statements are subject to inherent uncertainties and to a wide variety of significant business,
economic, and competitive risks, including, among others, those summarized herein. See Section VI — "Risk
Factors To Be Considered." When used in this Disclosure Statement, the words "anticipate," "believe,"
"estimate," "will," may," "intend," and "expect" and similar expressions generally identify forward-looking
statements. Although the Debtors believe that their plans, intentions, and expectations reflected in the forward-
looking statements are reasonable, they cannot be sure that they will be achieved. These statements are only
predictions and are not guarantees of future performance or results. Forward-looking statements are subject to risks
and uncertainties that could cause actual results to differ materially from those contemplated by a forward-looking
statement. All forward-looking statements attributable to the Debtors or persons acting on their behalf are expressly
qualified in their entirety by the cautionary statements set forth in this Disclosure Statement. Forward-looking
statements speak only as of the date on which they are made. Except as required by law, the Debtors expressly
disclaim any obligation to update any forward-looking statement, whether as a result of new information, future
events, or otherwise.
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TABLE OF CONTENTS
INTRODUCTION AND DISCLAIMER.......................................................................................................................i
I. OVERVIEW OF THE COMPANY................................................................................................................1
A. Corporate Structure of the Company................................................................................................1
B. Overview Of Business Operations....................................................................................................1
1. New Film and Television Production:................................................................................1
2. Theatrical Distribution:.......................................................................................................2
3. Physical Home Entertainment Distribution:.......................................................................3
4. Digital Home Entertainment Distribution:..........................................................................3
5. Worldwide Television Distribution:...................................................................................3
6. MGM Channels / Networks:...............................................................................................3
7. Consumer Products and Licensing:....................................................................................4
C. Corporate History..............................................................................................................................4
D. Capital Structure...............................................................................................................................5
1. MGM Credit Facility..........................................................................................................5
2. Print and Advertising Facility.............................................................................................6
3. United Artists Entertainment Credit Facility......................................................................6
E. Events Leading to Chapter 11 Cases.................................................................................................7
1. Industry Wide Factors.........................................................................................................7
2. Lack of New Production.....................................................................................................7
3. Evaluation of Restructuring Alternatives............................................................................8
F. The Proposed Plan............................................................................................................................9
G. Spyglass, Cypress and Garoge..........................................................................................................9
H. Transaction Documents...................................................................................................................10
II. SUMMARY OF TREATMENT OF CLAIMS AND INTERESTS UNDER THE PLAN...........................21
III. PLAN VOTING INSTRUCTIONS AND PROCEDURES..........................................................................26
A. Notice To Holders Of Claims.........................................................................................................26
B. Solicitation Package........................................................................................................................26
C. Voting Procedures And Ballots And Voting Deadline....................................................................27
D. Confirmation Hearing And Deadline For Objections To Confirmation..........................................28
IV. THE ANTICIPATED CHAPTER 11 CASES..............................................................................................28
A. Motions To Be Filed On The Petition Date....................................................................................28
1. Motion To Approve Combined Disclosure Statement And Confirmation Hearing..........28
2. Motion To Use Cash Collateral And Obtain DIP Financing............................................28
3. Motion To Continue Using Existing Cash Management Systems....................................29
4. Motion For Authority To Pay Prepetition Employee Compensation And
Associated Benefits..........................................................................................................29
5. Motion To Pay Prepetition Unsecured Claims.................................................................29
6. Motion To Pay Taxes........................................................................................................29
7. Adequate Assurance Of Utilities......................................................................................29
8. Motion To Pay Shippers And Storage Labs......................................................................30
9. Retention Of Noticing Agent............................................................................................30
10. Motion To Pay Prepetition Participations And Residuals.................................................30
11. Motion For Authorization To Honor Obligations Due To United Artists
Production Finance LLC In The Ordinary Course of Business........................................30
12. Motion to Approve Break-Up Fee and Expense Reimbursement.....................................30
13. Other "First Day" Motions................................................................................................31
B. Anticipated Timetable For The Chapter 11 Cases..........................................................................31
V. SUMMARY OF THE PLAN OF REORGANIZATION..............................................................................31
A. Overview Of Chapter 11.................................................................................................................32
B. Overall Structure Of The Plan.........................................................................................................32
C. Classification And Treatment Of Claims And Interests..................................................................32
1. Treatment Of Unclassified Claims....................................................................................32
2. Classification And Treatment Of Claims And Interests...................................................33
3. Acceptance Or Rejection Of The Plan..............................................................................37
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4. Means For Implementation Of The Plan..........................................................................37
D. Provisions Governing Distributions................................................................................................40
1. Allowed Claims................................................................................................................40
2. Distributions For Claims Allowed As Of The Effective Date..........................................40
3. Fractional Shares..............................................................................................................40
4. Interest And Penalties On Claims.....................................................................................40
5. Means Of Cash Payment...................................................................................................40
6. Withholding And Reporting Requirements......................................................................40
7. Setoffs...............................................................................................................................41
E. Treatment Of Executory Contracts And Unexpired Leases............................................................41
1. Assumption/Rejection of Executory Contracts and Unexpired Leases.............................41
2. Compensation And Benefit Programs..............................................................................42
3. Century City Leases..........................................................................................................42
4. Employment Contracts.....................................................................................................42
F. Confirmation And Consummation Of The Plan..............................................................................42
1. Condition To Entry Of The Confirmation Order..............................................................42
2. Conditions To Effective Date...........................................................................................43
3. Waiver Of Conditions.......................................................................................................43
G. Effect Of Plan Confirmation...........................................................................................................44
1. Binding Effect...................................................................................................................44
2. Revesting Of Assets..........................................................................................................44
3. Releases And Related Matters..........................................................................................44
4. Discharge Of The Debtors..............................................................................................45
5. Injunction........................................................................................................................45
6. Exculpation And Limitation Of Liability.....................................................................46
7. Term Of Bankruptcy Injunction Or Stays.........................................................................46
8. Post-Effective Date Retention Of Professionals...............................................................47
H. Retention Of Jurisdiction................................................................................................................47
I. Failure of Bankruptcy Court to Exercise Jurisdiction.....................................................................48
J. Miscellaneous Provisions................................................................................................................48
1. Effectuating Documents And Further Transactions..........................................................48
2. Corporate Action..............................................................................................................48
3. Indemnification Of Directors And Officers......................................................................48
4. Payment Of Statutory Fees...............................................................................................49
5. Amendment Or Modification Of The Plan.......................................................................49
6. Additional Debtors............................................................................................................50
7. Severability Of Plan Provisions........................................................................................50
8. Successors And Assigns...................................................................................................50
9. Revocation, Withdrawal, Or Non-Consummation............................................................50
10. Governing Law.................................................................................................................50
VI. RISK FACTORS TO BE CONSIDERED....................................................................................................50
A. Failure to Confirm the Plan.............................................................................................................51
B. Potential Adverse Effects of Chapter 11.........................................................................................51
C. Dependence on Key Personnel........................................................................................................51
D. Business Risks................................................................................................................................51
1. No Assurance Of Ultimate Recoveries.............................................................................51
2. Inherent Uncertainty Of Debtors' Financial Projections...................................................51
3. Lack of Audited and Recent Financial Reports................................................................52
4. Turmoil In Financial Markets...........................................................................................52
5. Unpredictability Of Entertainment Industry.....................................................................52
6. Rapid Technological Changes And Alternative Forms Of Delivery Or Storage
Of Filmed Entertainment..................................................................................................53
7. Piracy Of Motion Pictures, Including Digital And Internet Piracy, May Reduce
The Gross Receipts From The Exploitation Of Our Films...............................................53
8. Collective Bargaining Agreements...................................................................................53
9. Competition......................................................................................................................53
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10. World Events....................................................................................................................53
11. Litigation..........................................................................................................................54
12. Brand Concentration.........................................................................................................54
13. UAPF Credit Facility........................................................................................................54
14. Sale Of Equity In Cypress and Garoge.............................................................................54
E. Methods of Solicitation...................................................................................................................54
F. Classification And Treatment Of Claims And Equity Interests......................................................55
VII. APPLICABILITY OF FEDERAL AND OTHER SECURITIES LAWS.....................................................56
A. Plan Securities.................................................................................................................................56
B. Issuance and Resale of Plan Securities Under the Plan...................................................................56
1. Exemption From Registration...........................................................................................56
2. Resales Of Plan Securities; Definition Of Underwriter....................................................56
C. Listing of New Common Stock.......................................................................................................57
D. Issuance of New Common Stock to Spyglass and the C/G Stockholders.......................................57
VIII. CERTAIN U.S. FEDERAL INCOME TAX CONSEQUENCES OF THE PLAN......................................58
A. Certain U.S. Federal Income Tax Consequences to the Debtors.....................................................59
1. Cancellation Of Indebtedness Income..............................................................................59
2. Net Operating Losses – Section 382.................................................................................59
B. Certain Income Tax Consequences to U.S. Holders.......................................................................60
1. U.S. Holders Of Class 3 Credit Agreement Claims..........................................................60
2. U.S. Holders Of Interests In Holdings..............................................................................62
3. Backup Withholding And Information Reporting............................................................62
C. Certain Income Tax Consequences to Non-U.S. Holders...............................................................63
1. Non-U.S. Holders Of Class 3 Credit Agreement Claims..................................................63
2. Backup Withholding And Information Reporting............................................................63
3. Additional Withholding Requirements.............................................................................64
D. Importance of Obtaining Professional Tax Assistance...................................................................64
IX. FEASIBILITY OF THE PLAN AND BEST INTERESTS OF CREDITORS.............................................64
A. Feasibility of the Plan.....................................................................................................................64
B. Acceptance Of The Plan.................................................................................................................65
C. Best Interests Test...........................................................................................................................65
D. Confirmation Without Acceptance Of All Impaired Classes: The 'Cramdown' Alternative...........66
X. ALTERNATIVES TO CONFIRMATION AND CONSUMMATION OF THE PLAN..............................67
XI. THE SOLICITATION..................................................................................................................................67
A. Parties In Interest Entitled To Vote.................................................................................................67
B. Classes Impaired Under The Plan...................................................................................................68
C. Revocation; Waivers Of Defects; Irregularities..............................................................................68
D. Further Information; Additional Copies..........................................................................................68
XII. CONCLUSION AND RECOMMENDATION............................................................................................69

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APPENDICES
APPENDIX A Joint Prepackaged Plan of Reorganization of Metro-Goldwyn-Mayer Studios Inc. and
Certain of Its Affiliates
APPENDIX B Liquidation Analysis
APPENDIX C Financial Projections
APPENDIX D Audited Financial Statement (March, 2009)
APPENDIX E Unaudited Financial Statement (March, 2010)

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I. OVERVIEW OF THE COMPANY
This Disclosure Statement contains, among other things, descriptions and summaries of provisions
of the Plan. Unless otherwise defined herein, all capitalized terms contained herein have the meanings ascribed to
them in the Plan.
A. Corporate Structure of the Company
MGM Holdings Inc. ("Holdings") is the ultimate parent of the MGM family of companies.
Holdings owns MGM Holdings II Inc. which, in turn, owns Metro-Goldwyn-Mayer Inc. Metro-Goldwyn-Mayer Inc.
owns, directly or indirectly, a number of subsidiaries, including various non-Debtor entities. Metro-Goldwyn-Mayer
Inc.'s principal direct and indirect subsidiaries are MGM Studios, United Artists Corporation, United Artists Films
Inc. and Orion Pictures Corporation.
A list of the Debtors is attached as Exhibit B to the Plan. Generally, the Debtors include all the
wholly owned domestic subsidiaries of Holdings other than certain special purpose subsidiaries whose
organizational documents contain bankruptcy remote provisions.
The Company's executive offices are located at 10250 Constellation Boulevard, Los Angeles,
California 90067-6241. The Company's telephone number is [phone]. The Company's internet address is
www.mgm.com. Attached hereto as Appendices D and E, respectively, is the Company's audited financial
statement for the fiscal year ending March, 2009, and unaudited financial statement for the fiscal year ending March,
2010 (collectively, the "Financial Statements").
B. Overview Of Business Operations
MGM is a film entertainment company, with one of the world's largest film and television libraries
and a group of important content franchises. The Company is engaged primarily in the development, production and
worldwide distribution of feature films, television programming, interactive media, music, and licensed merchandise.
The Company's film and television library (the "MGM Library") contains approximately 4,100 theatrically released
feature film titles and approximately 10,800 television episodes, and is one of the largest collections of post-1948
feature films in the world. Films in the MGM Library have won over 200 Academy Awards, including fifteen Best
Picture Awards. The MGM Library also contains rights to many iconic film and television franchises. More
specifically, assets comprising the MGM Library include: (i) MGM (post-1985) / United Artists film library which
consists of more than 2,100 MGM, United Artists and Cannon Group titles, including the James Bond, Pink Panther,
and Rocky franchises as well as Legally Blonde, Hannibal, Rain Man, and A Fish Called Wanda; (ii) the Orion
Pictures film library which consists of more than 1,300 titles, including Silence of the Lambs and Dances With
Wolves; (iii) the Polygram film library which consists of more than 700 titles, including When Harry Met Sally and
Four Weddings and a Funeral; and (iv) the television programs library which includes approximately 10,800
episodes of programming, including Stargate SG-1, the longest running science fiction series in U.S. television
history. The Company also co-owns the rights to produce two films based on The Hobbit, a book which has sold
more than 100 million copies worldwide.
The Company's operations are carried out through seven key business segments:
1. New Film and Television Production:
The Company is involved in the development and production of films, television series, and other
programs. In recent history, the Company has been involved in production in one of three ways: (i) under the New
United Artists (as defined below) banner with certain non-Debtor affiliates, (ii) as part of joint ventures with
strategic partners, or (iii) under the MGM banner.
First, MGM Studios own a 62.5% stake in United Artists Entertainment, LLC ("United Artists
Entertainment," and, together with its subsidiaries, "New United Artists"), which is not a debtor herein. United