MGM is nearly bankrupt may cancel upcoming Hobbit and James Bond movies.

      Home » Current events and news » MGM is nearly bankrupt may cancel upcoming Hobbit and James Bond movies.

MGM is nearly bankrupt may cancel upcoming Hobbit and James Bond movies.

Sad news, MGM is nearly bankrupt which places"James Bond" and "The Hobbit" movies in jeopardy.

MGM held a very long conference call with bondholders/ lenders that caused lots of people to become "very loud and very upset." It turns out that the studio is on the verge of bankruptcy.

The call was to make a desperate plea for money in the amount of $20 million in short term and another $150 million to get through the rest of the year. One major project that MGM needs to fund is Peter Jackson's "The Hobbit" prequel.

In addition, MGM is $3.5 billion in debt and has requested that the bondholders waive the company's interest payments until February 2010. The bondholders know that they probably won't get all their money back if MGM goes bankrupt, since it's only worth about $1.5 billion. Unfortunately, that's exactly the direction they want to go in.

What this means is that if MGM goes bankrupt, it will lose the rights to James Bond (to pay part of the debt) and "The Hobbit" could be delayed indefinitely. The next step is for the bondholders to have a vote to decide MGM's fate.

Much more on the link http://www.deadline.com/hol...

MGM-LOGO.jpg - 16.58kb
By netchicken: posted on 26-9-2009








MGM is nearly bankrupt may cancel upcoming Hobbit and James Bond movies. | [Login ]
Powered by XMB
Privacy Policy