There will be collective sighs of relief around Middle Earth and MI6 today with news from that Metro-Goldwyn-Mayer Inc. (MGM) are finally back from the financial brink, with the 0 million raised by the company in place following the “pre-packaged” plan of reorganization announced at the beginning of the month.
New CEO’s, Roger Birnbaum and Gary Barber (formally of Spyglass Entertainment) have commented in light of today’s events
“Beginning today, MGM is a stronger, more competitive company, with a solid financial foundation and a bright future. We look forward to working with MGM’s dedicated employees to build upon this company’s legacy.”
Secured lenders have exchanged approximately $5 billion (which includes both accrued interest and fees) for most of the equity in the company, and MGM raised $500 million to fund operations, which was no doubt achieved in part, by the promise of future money-spinning property like as the long-established Bond franchise and Peter Jackson’s trek back to The Shire.
This is obviously fantastic news for the studio after months of financial uncertainty, but it does raise questions over the amount of leverage it will now have over its productivity, given such a large stake the lenders have in the business.
