MGM’s lenders have granted the studio a fifth extension on its debt payment, giving the studio until July 14th to sort out its financial issues. In a statement released yesterday, a day before the studio’s fourth extension (granted around March 31st) was due to expire, MGM released a statement saying:
“… its lenders agreed to extend the forbearance period and therefore will not seek remedies in connection with the nonpayment of interest and principal due on the company’s bank debt, including the revolving credit facility, until July 14, 2010. The lenders took this action in support of the company’s ongoing efforts to evaluate long-term strategic alternatives to maximize value for its stakeholders. MGM appreciates the continued support of its lender group for the process it is undertaking.”
What this means for the two Hobbit films stuck in pre-pre-production limbo in anticipation of the elusive greenlight is anyone’s guess. Head to our messageboards to follow and partake in the discussions about the possible outcomes of this waiting and watching situation.
Posted in:
Share:
The future of the storied MGM studio is uncertain and is keeping a pair of potential “Hobbit” movies uncertain as well. Variety re-reports this morning, with some new details, that the studio wants to push back a deadline for debt payments that expires on Friday. You must subscribe to get more than a tease but The Wall Street Journal reports the studio is seeking a reprieve until the end of June or perhaps even longer while it gets its…uh…stuff together. (Don’t reward them with a click though, they want to charge for the internet!)
Debtholders hoped to sell the historical studio which includes 4,000 catalog films (including this year’s “Hot Tub Time Machine,”) future James Bond films and half of “The Hobbit” films’ earnings among other assets. TORn friend Kristin Thompson explains on her own Frodo Frachise site that Time Warner (parent company of studio Warner Bros that swallowed up LOTR studio New Line and is the other 50% of “The Hobbit”) is flush with cash and as the last bidder standing on MGM, might just buy the thing “at the right price”. Meanwhile quiet pre-pre-production continues in New Zealand, waiting for the day when the two films get the greenlight. Yup, it is a mess but we will do our best to keep you posted.
Posted in:
Share:
Variety: Len Blavatnik’s Access Industries has dropped out of the bidding for beleaguered MGM, leaving only Time Warner Inc. as a potential buyer. Reps for MGM and Access had no comment but a source close to the situation indicated Friday that Access has withdrawn its offer after a deadline passed to accept the bid. For Blavatnik, buying MGM would have established him as a certified showbiz player, but one who would have probably sold off the rights to James Bond and the Hobbit. MGM put itself up for sale in November, drawing a trio of binding offers in mid-March. Lionsgate bailed out of the bidding a week later. More..
Posted in:
Share:
The Hollywood Reporter, is, you guessed it, reporting that the debtholders of MGMs $3.7 billion shortfall may vote to give the studio’s restructuring team a fifth chance to cover its debt.
The folks who gave the loan weren’t satisfied with the sales bids which included the reportedly highest offer from Time Warner at $1.7 billion. According to the story (which contains a super annoying AT&T banner add): “The proposal is expected to pass, giving MGM at least another several weeks to work on its restructuring.”
What does this mean for the two potential Hobbit movies? Continue reading “A fifth extension on MGM’s debt?”
Posted in:
Share:
Quint over at Aintitcool has a report that Australian Jack Thompson is “up for Thorin in The Hobbit”. The writer labels it a “rumor” so don’t jump to any conclusions and being “up for” a film probably means he has or will have an audition.
The pair of films based on “The Hobbit,” are waiting for a greenlight from the studios because one of the 50 percent owners of the potential revenue (MGM) has its future up in the air. Continue reading “What Thorin might look like”
Posted in:
Share:
Investors want to give MGM $500 million to start making new productions according to Nikki Finke at Deadline.com. Relativity Media, backed by a hedge fund, must see the profit potential in projects and properties like “The Hobbit” and further James Bond films. The report says this offer was made three weeks ago which means they probably weren’t following TORn’s advice, but maybe those holding MGM’s $3.7 billion debt will, and allow this to happen. In any case, the auction for MGM seems to be dead. If this deal is accepted, “The Hobbit,” could go forward right away. One also wonders if last Thursday’s long meeting was more about urging the bondholders to accept an offer like this and less about asking them for more money directly. Of course, investors may also want to carefully watch their money and that taps into the deepest fears of financiers wanting creative input into films. But with the LOTR track record of Producer Peter Jackson and proven visionary Guillermo del Toro directing, those fears are tempered. Thanks to Sunflower on our message boards and the many pairs of eyes keeping us up to date.
Posted in:
Share:
