Deadline Hollywood is reporting that MGM is needing $20M in short-term cash flow to cover overhead, and an additional $150 million to get through the end of year to stay out of bankruptcy and possibly losing such franchise films as The Hobbit (and its sequel) and James Bond 23. Here’s an excerpt from the article:
So the bondhholders said to MGM, in essence, that they were going to let the studio go bankrupt and collect their money since they’d be first in line to get paid. But Cooper explained that this would be the worst possible outcome for the creditors and the company. Because if MGM were forced into bankruptcy, then it would lose James Bond and the studio doesn’t think it can stay alive without 007. Also, a lot of other issues would surface that would tremendously hurt MGM.
Also, if MGM goes through bankruptcy, that’s a very expensive prospect (where only the lawyers get rich), and extremely disruptive (since who would do business with MGM in the interim) and wont get the creditors what they want which is their money back. It’s more than simply MGM losing Bond. The studio could lose a lot of other franchises.
Do you think the creditors will save the day for MGM, or do you think they’ll let the studio go into bankruptcy and risk losing such franchises?
