MGM going it alone?
Written by Chris Forrester
Sunday, 09 May 2010 10:20

Troubled Hollywood studio MGM looks increasingly likely to be going it alone in its struggle against bankruptcy. Latest reports suggest that only Time Warner is interested in buying the outfit.

MGM has reportedly been in discussions with its bank lenders – it owes US$3.7bn – about borrowing another US$1bn in order to roll over some of its debt obligations and get film production rolling again.

The financial talks are necessary because it looks increasing unlikely that a suitable bidder is going to emerge. On May 7 one of the favoured bidders, Len Blavatnik’s Access Industries reportedly dropped out of the race, leaving only Time Warner in the formal list of would-be owners, although there could always be others on the sidelines. Rumours persist that John Malone’s Liberty Media remains interested.

MGM has been on the sales forecourt since November. MGM’s debt-holders have already rolled over some of MGM’s payment obligations, and the next key due-date is May 15.