2 Apr 2010

MGM Not There Yet - Bidders and Creditors Getting Restless

Here is the latest instalment in the seemingly never ending MGM saga : Reuters is reporting that a stand-alone plan that creditors have presented to MGM in their latest meeting is taking too long to be approved by the studios and creditors and bidders are growing restless . The plan was presented after MGM expressed disappointment in the bids it has received as they were considered too low.
"Creditors presented a plan that abandons the idea of a sale of the entire studio and involves a mandate for MGM to make six to eight movies a year and requires large amounts of capital, after the studio was disappointed with bids it got in a second-round of bidding last week." (Reuters)

The stand-alone plan also involves MGM filing for a pre-arranged bankruptcy . The creditors are still trying to find a way to finance the troubled studios, however one of the major bidders is now threatening to walk away. So close and yet so far....The Hobbit is waiting for the 'green light' (MGM owns a part of The Hobbit's legal rights) , surely this saga must come to an end ...sooner or later, Middle-earth is waiting ....

To Be Continued....

(source : Reuters)