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 TheOneRing.net 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.
Speaking with Digital Spy at last night’s Empire Film Awards, Andy Serkis dished out several small but interesting tidbits about The Hobbit films.
He revealed that he met with Guillermo del Toro last year (during the time he spent in New Zealand on his Tintin shoot) and talked through some visual concepts with him. Further, Guillermo also showed him some “fantastic pre-visualization stuff”, and he believes that shooting on the Hobbit films, which “looks like it’s going to be a very exciting shoot… should kick start by the end of this year”.
On the classic question about whether the films are going to differ visually from the Lord of the Rings, he says “I think Middle-earth will still feel like Middle-earth. Obviously, Guillermo’s got a particular take on how he envisions it, and that’s why he’s there. Peter, as producer, and the writing team want a fresh pair of eyes on the story. But at the same time… fans aren’t going to think “Oh my God, where are we!” There’s a familiarity to it, but there’s a fresh pair of eyes on it.”
Asked whether Bilbo has been found yet, his answer was a spontaneous “No”.
Lastly, on the aspect of the films being in 3D, he said “I don’t know what’s going on with that debate really. We’ll have to wait and see. It’s an interesting question… I don’t know!”
TheOneRing.net has received rock-solid information from an absolutely reliable source that the MGM financial situation is indeed what is behind the delays of the start of “The Hobbit.”
The venerable film studio behind James Bond and about 4,000 other titles is reported to be in about $3.7 billion in debt but holds the distribution rights for two “Hobbit” films that are under contract to be made by Warners Bros. The two studios have an agreement in place to produce and distribute the film but financial difficulties for MGM, including the potential sale of the studio and its holdings, including rights to the films based on the book by J.R.R. Tolkien, has delayed the films.
The source inside the production has told TheOneRing.net that all of the wrangling with MGM is indeed a significant part of possibly pushing the films back.
The great folks from Red Carpet Tours (redcarpet-tours.com) have sent along this report and imagery from the Hobbiton set near Matamata, New Zealand:
At last – work on the set at Hobbiton is under way in earnest ! A team of 60 people have begun building Hobbit holes. Three of those under construction are new and rather large. Does that mean we’ll be able to step inside them? Check out the photos below.
Linuxelf sends along the latest batch of vintage New Zealand LOTR news articles. Richard Taylor Interview on Weta, Peter Jackson BAFTA’s FOTR Interview & some rare WETA team footage. Take a look!
Time Warner Inc, Lions Gate Entertainment Corp and billionaire Len Blavatnik’s Access Industries put up rival bids of $1.2 billion to $1.5 billion for studio Metro-Goldwyn-Mayer, sources familiar with the matter, told Reuters on Monday.
Time Warner put in the highest bid of the three, the sources said. The company has been seen as most likely to walk away with MGM and its library of mostly classics, such as the James Bond franchise and a piece of the two “Hobbit” films to be produced by “Lord of the Rings” director Peter Jackson. More
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).
