Posts Tagged ‘Metro Goldwyn Mayer’

MGM Bankruptcy? Is the Legendary American Media Company Running out of Options

August 10, 2010 Leave a comment
MGM (Metro-Goldwyn-Mayer Inc) which is most know for movie and television productions and distributions may be forced into bankruptcy by early next month.  The 86 year old company has had some great years during the silent film era and acted as the main Hollywood motion picture studio.  The moguls even own world recognized film franchises such as Rocky and  Bond, James Bond.  This is also something, that the studio is eyeing to make sure that the retain the rights to in the future.


If lenders of the studio were to provide enough capital, than MGM could put into action a voluntary restructuring instead of being forced into bankruptcy and potentially loosing James Bond movie rights.  Currently, they are facing about $4 billion in corporate debt!  This is a debt that has been accumulating as MGM has been granted repeated extension for repayments in an effort to avoid bankruptcy.  It seems like the company could use the expertise of an experienced bankruptcy attorney.    If forced into bankruptcy the ownership of Metro Goldwyn-Mayer would shift from the consortium to studio debt holders.  From there, the role of MGN as film producers and distributers could come to an end.


Strategic partnerships are another option for the once film production and distribution moguls.  Companies such as Yahoo are named to be considering this.