10 Mar 2010

MGM Second Round Bidding Start - If Money Were Cakes (part 2)

So a couple of weeks ago I told you (here) about MGM continuing money problems saga which is still to be settled. This morning a small update because the fate of MGM is very closely linked to the making of The Hobbit movie. MGM has now entered the second round of biding with 6 potential buyers on the table (THR). Time is really running out, MGM has until the end of March to pay its lenders or face debt restructuring. Bids needs to come in by the 19 of March but the process its not straight forward as MGM's books are revealing more financial problems.

“The deeper you dig, the more bad news you get…The numbers just are not getting any better.” (THR)

If the action is unsuccessful, MGM lenders (which are not very happy) will try to get what they get when MGM go into forced bankruptcy...in other words, it could get messy. Is The Hobbit safe? Will this situation affect the production? Hopefully all is good but when money are involved you never know. Warner Bros has already stepped in to help out but what we all really want is to see casting announced and filming start just to be reassured The Hobbit is safe.

(source: THR)