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Tuesday
Aug102010

MGM looms closer toward bankruptcy

MGM may go bankrupt by Sept. 15. That's what the internet is saying, at least. Purchasing bids have been too low, debt continues to mount, restructuring isn't fixing its problems, and its continued lack of capital has postponed projects like The Hobbit, Robocop, The Three Stooges, and the 23rd James Bond movie--all films that could make MGM money. The studio will file for bankruptcy or ask for a seventh extension on its debt, which exceeds $4 billion.

MGM owes $400 million by Sept. 15, reports THR

"It's kind of become a joke," said an exec at one of the companies considering a strategic partnership with MGM. "There is a real fatigue among the lenders after all of the forbearance agreements." - The Hollywood Reporter

Unfortunately, the fear of losing rights to 007 is holding the studio back from full bankruptcy.

As for the fear of losing control of 007 rights, there is no legal consensus on whether lenders would lose those rights in the event of a forced bankruptcy. But such concern has been enough to force lenders to agree to the half-dozen debt payment extensions.

For more information, head on over to the full article at THR. My opinion: while I thank MGM's debt for postponing Three Stooges and Robocop, I want The Hobbit and Bond 23 already. Let's get this over with.

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