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MGM gets debt forbearance No. 6

The longest-running drama in the movie business has been renewed yet again.

Metro-Goldwyn-Mayer, which has been teetering on the edge of bankruptcy for nearly a year, received a sixth debt forbearance from its bondholders and banker on Wednesday. The company announced that its lenders have extended the period during which it won't have to pay principal and interest on its bank debt, including a revolving credit facility, until Sept. 15.

Originally set for October 2010, MGM's debt deadline has been extended five times, most recently to July 14.

The struggling studio doesn't have the financial resources to pay its debt. Its major bondholders, who are determining the future of the company, have been considering numerous alternatives for its future. On Tuesday, Lions Gate Entertainment executives made a formal proposal to the steering committee of MGM debt holders about a merger. MGM also has been considering a deal that would have top executives of  film entertainment and production firm Spyglass run the studio, as well as a possible transaction with Summit Entertainment.

In a statement, a company spokeswoman said, "The lenders [agreed to extend the forbearance period] in support of the company’s ongoing efforts to evaluate long-term strategic alternatives to maximize value for its stakeholders."

-- Ben Fritz

 
Comments () | Archives (2)

This sucks! MGM needs to sell off the Hobbit rights! I want my two Hobbit films now! Not in ten years when all the actors are dead!!!

^ No kidding, Hobbit. Even if, some how, years from now, MGM manages to get back on their feet, they'll never see another dime from me. Their constant greed and unwillingness to admit defeat has probably ensured that Quantum of Solace will be the last Bond film that will feature Daniel Craig (my favorite Bond). And now, with these constant extensions, this will only conclude in the shelving of The Hobbit, something I've been waiting my whole life to see on the big screen.

Oh, but they'd still "like to maintain our rights to 'The Hobbit'". FU MGM, seriously.

Sincerely,

A former customer


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