Bond 25 questions: The Annapurna edition

Eon’s Bond 25 logo

Annapurna, one of the studios involved with Bond 25, has been having a financial crunch after a series of movies that underperformed at the box office. The Hollywood Reporter has said, quoting “multiple sources” that Annapurna has hired a law firm to explore “bankruptcy protection.”

Since Annapurna is a Bond 25 player, naturally the blog has a few questions.

What does Annapurna have to say?

Megan Ellison, Annapurna’s founder, wrote a note to employees.

“I got word this morning that there are some rumblings around town about our current status with the banks and that a story is likely to hit the press at some point today,” Ellison wrote, according to THR.

“Restructuring deals with financial institutions is not uncommon, yet the process is usually handled without a spotlight on it….Regardless of whatever comes out in the press, the truth is that we are well on our continued path towards success. There will always be speculation, misinformation and personal jabs in the press – that’s part of the business.

Sounds like a denial. Is it? 

Remember, THR reported that Annapurna had retained a law firm to evaluate a bankruptcy filing. It didn’t say the decision had actually been made to file. That’s not the firmest denial. Way back in the Watergate days, that sort of thing was dubbed a “non-denial denial.”

Moreover, when a CEO says they have no plans to do something, that applies to this moment, right now. Things change tomorrow, next week, next month, etc. Such statements have a very short life span. Things can change — and sometimes in a hurry.

Why should a Bond fan care?

Annapurna and Metro-Goldwyn-Mayer are partners in a joint venture called United Artists Releasing. The joint venture will release Annapurna and MGM films in the U.S. UAR is slated to release Bond 25 in North America.

Bond 25, of course, is well underway in its filming schedule. The question is whether an Annapurna bankruptcy filing, should it happen  cause some kind of hiccup with U.S. distribution. Universal is handling Bond 25 distribution internationally. Meanwhile, THR updated its original story to quote an MGM “source” (not identified) as saying there won’t be an effect.

But we should be OK for Bond 25, right?

Probably, at least for now. But a week ago nobody was talking about the possibility of an Annapurna bankruptcy. It’s something to keep an eye on.

UPDATE (Aug. 8) –– Things might be dicier regarding that last question.

Deadline Hollywood has more details. The entertainment website says Annapurna “has burned through much of the $350 million credit facility the company secured in fall 2017. Those sources said Annapurna has either defaulted or is about to default on that debt. A deadline has been set by lenders for this week to come to a solution.”

Credit facility is a fancy way of saying borrowed money.

Larry Ellison, co-founder of Oracle and Megan Ellison’s father, may bail out Annapurna, according to Deadline. But the tech mogul is being a tough negotiator and preparations are being made to file for Chapter 11 in either California or Delaware if no deal is struck, Deadline reported.