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MGM going bankrupt?

09.25.2009

A heated conference call resulted in the knowledge that MGM may be on the brink of bankruptcy.

MGM held a conference call with bondholders who apparently were very irate. The studio begged for money because they had been missing their numbers and were close to being out of money. MGM said they they needed $20 million to cover their overhead and another $150 million on top of that for the rest of the year. This sum would be used to cover upcoming projects, especially a huge one, Peter Jackson's HOBBIT.

The bondholders blamed former CEO Harry Sloane for overpromising then missing the numbers, which was exactly why he was removed from his position. Needless to say, they were not too pleased that Sloane had let the company go down that path. Aside from that fact, they knew that they had to figure out a new plan and move ahead since the company was in trouble.

The main reason for the conference call was for MGM to request for the creditors to waive interest payments on their $3.5 billion dollar debt til February. These guys have some major balls. I understand that it's nothing like the average person asking for money, but still, real balls on those guys. The equity holders say that MGM isn't really worth a lot of money at this point. So the bondholders basically may say to hell with it and decide to not bailout MGM. It would actually benefit them if the studio goes bankrupt because they would be the first to receive any sort of payment.

What's sad (but good for someone else) is that if this happens, someone could come in and buy the company for a decent amount of change. This means that MGM would lose the rights to 007. James Bond is one of their top commodities and they don't think that they could make it without it. Plus they would lose many other franchises as well. There is no final decision as of yet, but this could really go either way. MGM could go bankrupt or they could decide to restructure.

Extra Tidbit: To put my emotions so eloquently: Man that sucks.

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8:51PM on 09/27/2009

Disney

Release the hounds!
Sic em!
Release the hounds!
Sic em!
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5:03PM on 09/26/2009

Crap

MGM is a hallmark in Hollywood history. This is big and also bad news.
MGM is a hallmark in Hollywood history. This is big and also bad news.
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5:59AM on 09/26/2009

Big Whoop...

The only two things I can even think of that really have any memories for me that came out of this studio was of course James Bond, but also, The Wizard of Oz. Those two things will still be around if they go under so I don't care. They haven't been putting out any thing mildly amusing of late that I can think of so... As for the Hobbit... It'll get made one way or another. 10 years from now, you all will already have it in your video collection so don't worry.
The only two things I can even think of that really have any memories for me that came out of this studio was of course James Bond, but also, The Wizard of Oz. Those two things will still be around if they go under so I don't care. They haven't been putting out any thing mildly amusing of late that I can think of so... As for the Hobbit... It'll get made one way or another. 10 years from now, you all will already have it in your video collection so don't worry.
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7:22AM on 09/26/2009
kinda funny that their biggest movie, celebrated its 70th anniversary this week
kinda funny that their biggest movie, celebrated its 70th anniversary this week
+1
2:46AM on 09/26/2009

Regarding The Hobbit

Warner Bros own New Line and they are the ones who settled the recent court case with the Tolkien family. Warner will be more than happy to buy "The Hobbit" from MGM.

As for Bond, it's a billion dollar franchise, every studio would want that but my money's on Sony buying it back.
Warner Bros own New Line and they are the ones who settled the recent court case with the Tolkien family. Warner will be more than happy to buy "The Hobbit" from MGM.

As for Bond, it's a billion dollar franchise, every studio would want that but my money's on Sony buying it back.
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12:30AM on 09/26/2009
Why do I feel like this was a long time coming? They're the studio with the coolest logo (WB can jazz up their moniker all they like, but when that lion roars, they have my full attention), but James Bond aside, I have few memories of what movies or franchises were specifically theirs in the last five years. Fox and WB and Uni and now Lionsgate have some real hits as of late. But off the top of my head...

My money says WB might take over, since they've had kind of a partnership in past.
Why do I feel like this was a long time coming? They're the studio with the coolest logo (WB can jazz up their moniker all they like, but when that lion roars, they have my full attention), but James Bond aside, I have few memories of what movies or franchises were specifically theirs in the last five years. Fox and WB and Uni and now Lionsgate have some real hits as of late. But off the top of my head...

My money says WB might take over, since they've had kind of a partnership in past.
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7:19AM on 09/26/2009
idk... i mean when that wb logo shows up and than bugs bunny comes out and bites that carrot, it has my inner childs attention
idk... i mean when that wb logo shows up and than bugs bunny comes out and bites that carrot, it has my inner childs attention
12:29AM on 09/26/2009
Too bad this couldn't happen to Fox.
Too bad this couldn't happen to Fox.
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10:26PM on 09/25/2009
I bet 4 billion Disney picks this company up too.
I bet 4 billion Disney picks this company up too.
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10:10PM on 09/25/2009
Wow. The Hobbit just can't catch a break. And to think MGM might not control 007 anymore is kind of weird.
Wow. The Hobbit just can't catch a break. And to think MGM might not control 007 anymore is kind of weird.
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9:12PM on 09/25/2009
So wait a minute... what the fuck is gonna happen with The Hobbit if they go bankrupt?! I can't wait any longer man
So wait a minute... what the fuck is gonna happen with The Hobbit if they go bankrupt?! I can't wait any longer man
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9:10PM on 09/25/2009
how the hell does mgm get to this point, meanwhile fox is surviving just fine?
how the hell does mgm get to this point, meanwhile fox is surviving just fine?
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7:14PM on 09/25/2009
"Lose" is spelled with 1 "o". Saw it twice towards the end there.
"Lose" is spelled with 1 "o". Saw it twice towards the end there.
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+7
5:38PM on 09/25/2009

This is what happens...

when MGM insists on remaking films that nobody wants, like "Fame" - it's money down the toilet.
when MGM insists on remaking films that nobody wants, like "Fame" - it's money down the toilet.
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