EXCLUSIVE: In the next few days, the steering group of MGM’s creditors (which represents the largest holders of the debt) are expected to make some key decisions about the future of the nearly bankrupt studio. Here’s more evidence that the MGM auction is a bust: I’ve learned that last Thursday, right before Easter weekend, MGM Management gave an 8-hour presentation in the old MGM Screening Room to the creditors. Some attended. Some joined via phone. The studio’s management pleaded for a stand-alone but restructured MGM with a game plan to make 6 to 8 films per year. They requested that the creditors try to raise $500 million of equity capital and $500 million in a production fund. I as told that, basically it was a “give us the dough, more of the same” attempt at a Hail Mary. Management tried to portray every film in the business plan as a “big winner” (unlike so many previous releases). Although the MGM toppers were peppered with questions from the creditors in attendance, sources tell me that most of the questions didn’t seem to be “well informed” about the nature of the film business. So what will the creditors do? Well, there haven’t been any votes or polls. But knowledgeable sources tell me there does not seem to be much support among the major holders of the credit to accept either the Time Warner offer or the Len Blavatnik offer. What happens next is anyone’s guess…
MGM Begs Creditors For Stand-Alone Studio
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