MGM Loses Bid To Buy $11M In United Artists Debt

Law360, New York (November 7, 2011, 7:00 PM EST) -- A New York bankruptcy judge on Monday refused to approve an agreement between Metro-Goldwyn-Mayer Studios Inc. and United Artists Production Finance LLC to buy about $11 million in UAPF debt relating to credit agreements with an MGM subsidiary, saying his court lacked jurisdiction.

In denying MGM's motion, U.S. Bankruptcy Judge Stuart M. Bernstein said the purchase agreement came after he approved MGM's Chapter 11 restructuring plan in December, which meant that MGM was no longer under the protection of the bankruptcy court.

The bankruptcy court could...
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