MGM has been granted yet another extension by its creditors, the sixth delay in the studio’s bankruptcy meltdown. If not for this latest extension, the studio would have been forced to either find creditors or file bankruptcy by the end of Wednesday. Needless to say they don’t have the money yet.
The new deadline will be September 15th, and by that time (nearly a year since this fiasco began) MGM will have hopefully settled on a restructuring deal that will help the studio avoid having to sell off its assets in order to pay back the debt it owes to over 140 lenders.
Of course, the bad news for us movie fans is that this latest delay means that the fates of MGM’s top movie properties, The Hobbit and James Bond, will also be delayed even further. The news as of late (if you’ve been following) seems to indicate that the statuses of both The Hobbit and Bond 23 (the next film) could be in jeopardy; actors and directors circling both projects could ultimately walk if production doesn’t begin soon. So if you’re worried about Daniel Craig passing on Bond or Ian McKellen dropping out of The Hobbit, you can officially start to panic (just slightly though). Properties like the Red Dawn remake, a Three Stooges movie and a Robocop reboot are also hanging in the balance.
There is a silver lining: we recently got word that Spyglass Entertainment has an offer to MGM on the table – one that would transform MGM from a studio into a production-only entity, while pruning MGM’s costly marketing and distribution branches. The latest report is that Lionsgate (Kick-Ass) is also putting together another draft of an offer. Supposedly, this latest delay is to allow Lionsgate officials to revise their deal, based on a meeting that took place with a committee repping the MGM creditors this past week.
The deal Lionsgate proposed would essentially restructure MGM while retaining the studio’s name. MGM-Lionsgate would have access to MGM’s extensive back catalog of titles, the Bond franchise, half of The Hobbit (Warner Bros. has essentially purchased the other half already), a production-distribution branch that would handle valuable properties like the Tyler Perry empire and popular TV shows like Mad Men, and other miscellanous properties like a portion of TV Guide and a TV syndication branch.
Time Warner (which owns Warner Bros.) has already put a low-ball offer on the table and Summit Entertainment (The Twilight Saga) is also still circling. Time Warner offered to pay $1.5 billion for MGM and its properties – naturally the studio’s creditors are holding out for a better offer, as the debt owed to them is close to $4 billion.
Personally, at this point, as a movie fan, I’m hoping Time Warner gets hold of MGM, if only out of the selfish desire to see Warner Bros. appoint their frequent collaborator Chris Nolan as director of a James Bond film, while placing their other friend Peter Jackson at the helm of The Hobbit. But that’s a short-sighted movie geek wish, I know 
– from a business standpoint, MGM’s creditors want to recoup their losses. I would too.
So, by September 15th we’ll hopefully have a final resolution to this MGM situation – and hopefully, hopefully our James Bond and Hobbit films will still be intact, with the stars and directors we want to see involved still attached. Hopefully (fingers crossed!).
Sources: Variety and The Associated Press
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sounds like MGM is extending thier death rattle to further infuriate fans lol
I’D SAY IT’S TIME TO BURN DOWN THE STUDIO, COLLECT THE INSURANCE, SELL OFF THE ASSETS, AND CALL IT A DAY!
I’am for one glad that they got another chance. Hurry up you slugs the sands are running through the hour glass at a terrific clip. I’m sort of hopeing that someone other than Warner ends up with this as I think that their house has already put a lot of risk on their plate over the last few years and in the near future as well. Better to spread some of it around. Of course that doesn’t mean they might not end up with it in a few more years down the road anyway. Give the Nolans time to catch everything up before tackling something as big as Bond. I wonder since Warner has part of the Hobbit if they could go in with Lionsgate in a Joint venture?
old man, i really dont think that anything positive will come of this anyway, its already hurting the hobbit, and bond, seems those are the two main things that people care about. things like that get delayed, actors get bored and walk from the project. its just a shame really
Yeah, perhaps my hopes are misplaced Anthony. That’s funny GetMoney, yeah, pay a four Billion dollar debt off with lets say, “The Hobbit” proceeds!? I don’t know how you do that. What will you do for operating capitol after you pay off the debt? It’s not like they would have collateral to produce any more movies either. Even if “The Hobbit” could generate that kind of positive cash, which I doubt. Additionally the creditor’s aren’t going to wait 3 years for their money. No, they’re going to have to do something they don’t want to do, no matter how you slice it…
just give it up
Wow. Well if they cant afford then they cant!!!! Gosh i hate lionsgate films,they make the crappiest films….
They need 2 sell off the right of The Hobbit or Bond franchise…. Sell one off make the other movie and then take the money they made off that movie and pay off the debt they own.
Damn it Chloe! can’t the feds just print up some money and drive it over to MGM in a armored vehicle?
If Bank of America us too big to fail, damn it to hell!, if James Bond is going to be destroyed!
I’ve always said, “just throw money at your problems, especially if your problems require more money!”
Come on Cameron you got some change in yo pocket. A,ight!
Yo, yo, Avatar yo yo,,, aight,,,
the hobbit is guaranteed money in the bank..Bond isn’t…that being said Spyglass or even Summitt picking them up maybe a good idea, they are both creative film markets however Lionsgate,though a decent film company,is only a little better than say the Golan-Globus film company in the ’80s that gave us a bunch of action flicks with Arnie,Stallone and Norris..that company folded when their films went straight to VHS..So for Lionsgate to pick this company up-they’d have to get their act together too..I ‘d hate to see this happen again in 2 years, when they run out of money again trying to get the hobbitt out..Time/Warner is the best deal if only for them to pick up the franchises..
This is really nothing more then a stay of execution in this economy.
MGM will eventually fall, then and only then, will there be an all out bidding war for the rights to Bond and Hobbit.
Whatever else is left on the MGM carcass will be eaten/sold off to other various/Disney studios,,,
Lionsgate… MGM… Leo the Lion… seems like a good fit, from a purely logo-centric perspective.
I don’t have anything else to say that hasn’t already been said by countless movie fans. I just hope this abomination gets sorted out soon, before it’s too late.
I would be immensely excited if WB got hold of the 007 rights and offered the next movie to Christopher Nolan/ That would be awesome. What about making Christian Bale as 007 in a one off adventure??? Sounds cool to me……
You can all relax. I just bought the studio this morning. (I put it on my Visa.) Each of you owe me $10 CDN.
yeaaa i’ll get right on that
Here, you take credit cards right?
It’s so simple why didn’t any one think of it before? Clever Canadians…
I just wanted to say that i love the movie the heavenly kid.It has always been a personal favorite. In light of this i was watching it recently and realized that it should have been a longer movie. I know it has been like 20 years since it was made so i do not expect you to do anything about it. I just wanted you to know my thoughts. One of the things that bothered me was that Lenny never knew Bobbie was his father.