14 Jul 2010

MGM Latest: A New Debt Extension (Feel Free To Cry But Do Not Panic)

Yes you did read correctly...Metro-Goldwyn-Mayer has just been given a new extension for the payment of its huge debts. I've kind of lost the count now, I think this is extension number 6 and still no end in sight. Next deadline has been moved forward to September 15 , one full year since MGM troubles with debts came to life. MGM, owns half the rights to The Hobbit movies, and owes about $4 billion to its creditors...so why are they been granted this new extension ? Why are they holding on for dear life (and shiny dollars) ? Well, yesterday Lions Gate Entertainment made a new offer to MGM and my guess is that this was one of the main reasons why this new extension was given. I would not necessarily take this news as a 'bad news' , my hope is that MGM is now in such a dire state they will be forced to accept Lions Gate's offer which should (if all goes smoothly) free The Hobbit :)

(source: Associated Press)