MGM watch: studio gets another debt extension, Reuters says

Metro-Goldwyn-Mayer Inc. said today in an e-mailed press release it got another extension for repaying its debt, this one lasting until Oct. 29. Here’s the start of a STORY BY REUTERS that reported the news:

Metro-Goldwyn-Mayer [MGMYR.UL] said on Wednesday that its lenders agreed to extend a deadline for debt payments as the film studio prepares to be handed over to film company Spyglass Entertainment.

A source familar with the matter said last week that the founders of Spyglass signed a nonbinding letter of intent to take over MGM, which is struggling with about $4 billion of debt after being bought out in 2005.

Nothing new about the possible Spyglass deal in today’s announcement, much less whether (as fans hope), it will get Bond 23 out of its current state of limbo.

UPDATE: Nikki Finke weighs in on her Deadline site which YOU CAN VIEW BY CLICKING HERE. She sounds as tired of these debt extensions as most Bond fans.

2 Responses

  1. Sorry for being a cynic , but could someone kindly explain to me HOW MANY ‘ debt extensions ‘ MGM can actually obtain before having to declare bankrupcy ?

    This situation just allows the company not to sink straight to the bottom – without even announcing new productions – so what’s the point of keeping the corpse barely alive ?

  2. If the Spyglass deal becomes reality, the company would enter bankruptcy court. It would be a “prepackaged” bankruptcy where the creditors agree on everything beforehand to minimize time in court. Assuming all the news accounts about Spyglass are correct, this latest debt extension was probably made to give Spyglass, the creditors and whoever else a little more time to work it out.

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