For the second time, MGM is catching a break from its lenders, as the venerable studio officially goes on the block. It has been fighting to stay in business, while keeping up with even the interest owed on its staggering $3.7-billion debt. So far MGM has avoided being forced into bankruptcy by its creditors, which would have decreased the value of the company, which still owns a 4,000-title movie library as well as the Bond and Pink Panther franchise. UPDATE: Potential buyers include Lions Gate, Time Warner and Viacom.
The following statement indicates that the company will be relieved of another interest payment:
MGM said today its lenders have agreed to extend the forbearance until January 31, 2010. The lenders took this action in support of the Company’s ongoing efforts to develop and evaluate long-term strategic alternatives to maximize value for its stakeholders. MGM appreciates the continued support of its lender group for the process it is undertaking. MGM also said today it is beginning a process to explore various strategic alternatives including operating as a standalone entity, forming strategic partnerships and evaluating a potential sale of the Company.