MGM has announced that the company’s restructuring has become effective with exit financing of $500m in place.

The company’s “pre-packaged” plan of reorganisation was confirmed on December 2 by the US Bankruptcy Court for the Southern District Of New York.

“MGM is emerging from one of the most challenging periods of its storied history,” co-chairmen and CEOs Gary Barber and Roger Birnbaum said in a statement, adding later: “Beginning today, MGM is a stronger, more competitive company, with a solid financial foundation and a bright future.”

Sources said the MGM had a “significantly improved financial position” with secured lenders exchanging approximately $5bn, which included accrued interest and fees, for most of the equity in the company.

As part of its exit financing, MGM raised $500m to fund operations, including production on a new slate of films and television series. JP Morgan arranged MGM exit financing.