Published on November 12th, 2009 | by simeon0
Vultures Circling MGM’s Remains?
MGM could be auctioned off within the next few weeks with its library potentially being picked up by a major studio according to Variety.
With its reprieve from interest payments on its $4 billion debt set to run out at the end of the month, speculation has already become rife that the Lion’s only options are either auction or bankruptcy.
If the former, different parts of the company would be sold – the famed logo for example is separate and could go to Kirk Kerkorian who previously bought and sold the company. United Artists would also likely go in a separate deal. The combined assets of the once major Hollywood studio could return as little as $1.5 billion in the current tight economic times.
Any auction however requires approval from the majority of the bondholders who may prefer a pre-packaged bankruptcy offer.