MGM is For Sale
Posted on November 13, 2009MGM is officially up for sale, according to Variety. Bondholders have given the company a month and a half to come up with a new cash infusion or a buyer before more debt payments are due.
MGM has $3.7 billion in debt. Bondholders have allowed MGM to forego interest payment three times already, but their patience is fraying. MGM management says its open to various ideas for solving its financial problems, but an outright sale seems the most likely outcome, with some kind of restructuring of the debt.According to sources close to the company, MGM's investment bankers Moelis & Co. are overseeing the sales process, while current management will remain in place with feature development and production continuing. MGM's lenders had agreed previously to let the studio forgo three interest payments until Dec. 15.