In a development that’s hardly surprising, MGM has received more time from its lenders to figure out its ownership and try to make the Lion roar again. This follows an auction that amounted to a bottom-feeding frenzy in which suitors looked over the studio’s assets that include James Bond, a half-share of The Hobbit, and other franchises and a library. But the bids that came in would not even have halved the MGM debt load. The Studio just issued this statement:
“MGM said today its lenders agreed to extend the forbearance period and therefore will not seek remedies in connection with the nonpayment of interest and principal due on the company’s bank debt, including the revolving credit facility, through May 14, 2010. The lenders took this action in support of the Company’s ongoing efforts to strengthen its financial position, and MGM appreciates their continued support throughout the process.”
Subscribe to Deadline Breaking News Alerts and keep your inbox happy.