MGM have been in trouble for a while and you can see our coverage of the various ways in which it could have been resolved here. MGM own the James Bond franchise and The Hobbit, both of which have stalled on development because of the nightmare situation in which MGM currently sits.
Unfortunately I know nothing about the way that these debt companies / creditor companies and tax law work but according to the article, if the Spyglass Entertainment Chief Execs (Gary Barber and Roger Birnbaum) take on the company, the creditors would ‘relieve’ the debt and value MGM at $1.9bn. Not too bad for a company so much in debt!
Variety: “The creditors would then take a majority equity stake in the restructured company, according to insiders close to the deal. That could save the studio from forced bankruptcy.”
They go on to say that Spyglass would then take a 4% ownership of MGM.
It’s a really interesting article which I encourage you to go and read as long as the annoying paywall doesn’t stop you!
If this comes off, it could mean a kick-start to both Bond and The Hobbit which would be wonderful for those of us waiting to see them both made. There must be hundreds of people waiting for this MGM mess to be resolved so they can continue working and we hope that this may be the answer.