MGM DEBT V: The Return of the Forbearance
MGM now has as many sequels as "Rocky."
The financially strapped studio has received its fifth extension since last fall on repaying interest and principal on its crushing $3.7-billion debt.
The payment, which also was to be applied to a $250-million revolving credit facility and was scheduled to be paid Friday, is now due July 14.
MGM's creditors still haven't agreed on a plan for the studio's future as they continue to weigh a proposal by its management to keep the company running independently, other restructuring scenarios or a sale to Time Warner Inc., which has had an offer on the table of $1.5 billion.
A week ago, the other bidder for MGM, industrialist billionaire Len Blavatnik, pulled his offer after the deadline he imposed passed without a response.
In a statement Thursday afternoon, MGM said the latest forbearance was granted "in support of the company’s ongoing efforts to evaluate long-term strategic alternatives to maximize value for its stakeholders. MGM appreciates the continued support of its lender group for the process it is undertaking.”
-- Claudia Eller