The other day Brad sent me an e-mail asking if I'd like to delve into the status of MGM with an editorial of some sort. You know, MGM, the once great studio that currently holds the rights to the James Bond franchise and Peter Jackson's The Hobbit films. The studio sitting on Red Dawn and Joss Whedon's Cabin In The Woods.
"Something has to happen, right?" he asked.
Well, yes and no. Yes, the lenders will eventually sell the studio for what they can get out of it. No, they don't have to do it anytime soon. That's because the lenders now control the studio.
Under normal circumstances a studio like MGM, with its crushing $4 billion debt would be forced to sell off its assets to pay off its creditors. Unfortunately for movie fans the creditors in this case decided to buy up the debt for 60 cents on the dollar.
"Something has to happen, right?" he asked.
Well, yes and no. Yes, the lenders will eventually sell the studio for what they can get out of it. No, they don't have to do it anytime soon. That's because the lenders now control the studio.
Under normal circumstances a studio like MGM, with its crushing $4 billion debt would be forced to sell off its assets to pay off its creditors. Unfortunately for movie fans the creditors in this case decided to buy up the debt for 60 cents on the dollar.
- 8/2/2010
- by Bill Cody
- Rope of Silicon
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