- 32 -
On November 10, 1995, Carolco filed a voluntary petition
under chapter 11 of the U.S. Bankruptcy Code. On November 22,
1995, Carolco filed a motion asking the bankruptcy court to issue
an order allowing Carolco to sell its assets to Twentieth Century
Fox for $47.5 million. On January 16, 1996, the bankruptcy court
held a hearing on Carolco’s motion, wherein Carolco announced
that Canal+ had offered $58 million for the Carolco film library
and related assets. In an order dated March 21, 1996, the
bankruptcy court approved the sale of Carolco’s film library and
related assets to Canal+ for $58 million.
Between September 13, 1996, and March 28, 1997, the debtors’
and creditors’ committee filed various successive plans of
reorganization. Under each of these plans of reorganization, the
holders of Carolco subordinated notes were in class 10 and the
holders of Carolco preferred stock were in class 12. In each
case, the securities holders were to receive nothing in Carolco’s
liquidation.
In an order dated April 3, 1997, the bankruptcy court
confirmed the fourth and final amended plan of reorganization.
The bankruptcy court confirmed that SMHC (MGM Group Holdings’
successor), which then held the Carolco securities, was to
receive nothing for the Carolco securities under this plan of
reorganization because it was classified as a holder of class 10
and 12 claims.
Page: Previous 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 NextLast modified: May 25, 2011