Message board members Pipe Dream and macfalk have unearthed more breaking news regarding MGM’s financial woes. A Business Week/Bloomberg update announced that billionaire Len Blavatnik’s Access Industries may drop out of the bidding, having received no response to-date from MGM or its creditors regarding its restructuring proposal. Another interesting development was published today at Variety: with MGM’s latest extension on its debt servicing payment scheduled to run out today, MGM’s creditors granted yet another extension; this one for 45 days (expiring May 14).

From both articles: lenders have deemed the current offers too low, a person with knowledge of the deliberations said last week. MGM debtholders are said to be split into two camps — one that wants to accept the best offer; and the other that wants to prolong the process in hopes of keeping the studio alive. The remaining binding offers for MGM are believed to be in the $1.5 billion range, far below the $2 billion threshold price sought by MGM and its debtholders. MGM put itself up for sale in November, drawing a trio of binding offers two weeks ago. Lionsgate bailed out of the bidding last week, leaving only Time Warner and Len Blavatnik’s Access Industries in the running.

As we reported in this exclusive, inside sources tell us that moving forward with production of The Hobbit hinges on developments with MGM. So stay tuned here as we continue following the MGM saga closely.