MGM CEO Harry Sloan has been asked to step down amidst a restructuring that moves three senior executives into the office of the CEO, putting them in charge of the studio’s operations, a company spokesperson confirmed to B&C. Sloan will maintain his post as chairman.
Sloan, a former lawyer and media entrepreneur, took over MGM studios in late 2005 and signed a three year extension last summer, despite the company’s continuing struggles to procure a hit and climb out of debt.
The company has brought in Stephen S. Cooper as restructuring specialist and vice chairman. Cooper co-founded Zolfo Cooper, LLC, a restructuring advisory firm. He served as Enron’s chief executive during its bankruptcy and was Krispy Kreme Doughnut’s CEO during its restructuring.
Cooper will occupy the CEO position along with Mary Parent, chairperson of the worldwide motion picture group, and Bedi Singh, CFO and president of finance and administration.
MGM has struggled with $3.7 billion in debt, which is due in June 2012, according to Reuters. Much of that debt comes from the 2005 buyout of the company to a group of private equity and media investors.
The news was first reported by www.deadlinehollywooddaily.com