With a dearth of second-round activity in MGM’s search for a buyer, there is increasing likelihood that the studio will undergo a bankruptcy reorganization. Six suitors are conducting additional due diligence, which includes management presentations of detailed financial information about the Century City studio. But a deadline on second-round bids hasn’t been set following receipt last month of a dozen nonbinding offers in an initial round of bidding best described as underwhelming.
MGM consultant Moelis & Co. invited just half of those making first-round offers to participate in the next phase of the process, including Time Warner, Lionsgate and Access Industries, with Qualia Capital still circling but not actively involved. More..
The possible sale of MGM — one of Hollywood’s longest-running dramas — will come into focus in the next few weeks when the first bids are expected to be submitted. The Lion, which put itself up for sale Nov. 13, has received several non-disclosure agreements back from potential bidders, a source close to the process indicated. It sent out over 20 NDAs last month out as a prelude to bidders seeing MGM’s internal books.
It’s not a given that MGM will be sold. The beleaguered studio has left open the door to continue operating as a standalone entity or forming some kind of strategic partnership if MGM’s 140 debtholders agree to do so, possibly through a prepackaged bankruptcy. The bondholders have agreed to hold off receiving interest payments until Jan. 31 in order to enable management to find out the actual value of the assets and whether it should proceed with a formal auction. More..
The WB let me know that the exciting event planned for December 8th (tomorrow) has now been postponed for the 15th. We’re still working on trying to gauge what the ‘something’ is…any thoughts? Post about it on our message board!
A few days ago, we reported here that Peter Jackson has indicated filming for The Hobbit will be delayed to mid-2010. Doing the math on how long it took to film The Lord of the Rings movies was sobering with respect to achieving a 2011 release, but we found reason to be optimistic in the fact that many sets, set designs, etc. won’t have to be created from scratch. Today, however, we’ve been alerted to more sobering news on the release from the WaxWord blog over at thewrap.com:
“Executives close to the project said that Warner Brothers is now likely to release the first film at the end of 2012, and not at the end of 2011 as had been hoped for by the fans. The second part would be pushed to 2013.”
No need to lose hope for a 2011 release yet though. The article also quoted PJ as saying a final decision about the release dates won’t be made until the screenplays, budget and schedule are complete. More than ever, all eyes are on Guillermo, Peter, Fran, Phillipa and the studio.
I received a mysterious email followed up by a phone call in the last few days. I don’t know much, all I know is that ‘Something is coming’ on December 8th, 2009. And that we should be watching this space and www.lordoftherings.net stay tuned for more!
With a dearth of second-round activity in MGM’s search for a buyer, there is increasing likelihood that the studio will undergo a bankruptcy reorganization. Six suitors are conducting additional due diligence, which includes management presentations of detailed financial information about the Century City studio. But a deadline on second-round bids hasn’t been set following receipt last month of a dozen nonbinding offers in an initial round of bidding best described as underwhelming.
A few days ago, we reported