MGM brings in trio to replace chief executive

The owners of Metro-Golden-Mayer have ousted its incumbent chief executive and replaced him with three people in an attempt to turn the ailing Hollywood film studio around - reports The Telegraph.

The trade and private equity consortium which took the studio behind the James Bond and Robocop series of films private in 2005, has decided to dispense of the executive services of industry veteran Harry Sloan. He will however continue as chairman.

In his place, the group is bringing in three members to "the office of the chief executive." The three are turnaround expert Stephen Cooper; MGM production head Mart Parent; and Bedi Singh, MGM's chief financial officer.

The unusual move is an attempt to revitalise the studio's finances.

Top of their list will be to tackle the group's $3.7bn of debt, the bulk of which was accumulated as result of the group's 2005 leveraged buy-out.

The consortium, which includes Sony, Comcast, Providence Equity Partners and TPG, took the decision to shake up the management ahead of a $250m revolving credit payment due next April, with the $3.7bn of term debt due in June 2012.

In May, Mr Sloan appointed boutique investment bank Moelis & Co. to begin to initiate the refinancing process, setting up a steering committee of MGM's 140 creditors.

The new management team will effectively be led by Mr Cooper, who was also named vice-chairman.

He has been tasked with improving the health of the company's balance sheet.

Mr Cooper is a well-known restructuring expert, having overseen the turn-around of Krispy Kreme, the doughnut empire, and working as interim chief executive during Enron's bankruptcy.

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