MGM Prepares for Bankruptcy (1 Viewer)

[mattCR]

http://www.deadline.com/hollywood/exclusive-details-mgm-makes-phone-plea-to-bondholders-for-millions-to-stay-alive-both-hobbit-and-james-bond-in-peril-bondholders-tell-studio-to-go-bankrupt-mgm-calls-that-worst-possible-outcom/

The call was for the benefit of the lenders, and MGM management made the presentation along with Stephen F Cooper, that Zolfo Cooper restructure specialist. MGM made a desperate plea for money because the studio had missed its numbers and was going to be out of funds very soon. "The implication was that it's teetering on bankruptcy," one source told me. MGM said it needed $20M in short-term cash flow to cover overhead, and an additional $150 million to get through the end of year and continue funding its projects, and to start Peter Jackson's Hobbit.

MGM NEEDS "Fame" it's only release on the slate for some time to be a success as a god faith sign to bondholders that there is at least a promise of potential money to be made. If "Fame" looks bad at the BO this weekend, MGM could be in more trouble then it can get out of.

Bob Evans, where are you now?

 

[Gary Hightower]

Too bad about that. I wouldn't want my studio's success riding on a miserable looking movie like Fame. I hope Sony stays far away from MGM product if they go under.

 

[MatthewA]

Originally Posted by Gary Hightower

Too bad about that. I wouldn't want my studio's success riding on a miserable looking movie like Fame. I hope Sony stays far away from MGM product if they go under.

There's no way they're going to stay away from James Bond. Every studio is going to want that one.

As for the library, it should be at Time Warner.

 

[MatthewA]

Slash Film claims they have until the end of the year to sort things out (claiming "The Hobbit" is in "no danger")

http://www.slashfilm.com/2009/10/02/mgm-gets-a-financial-reprieve-the-hobbit-in-no-danger/

 

[mattCR]

Nikki updates.

http://www.deadline.com/hollywood/toldja-mgm-confirms-forbearance-agreement-with-its-lender-group-until-dec-15/