MUMBAI: MGM has set a second-round biding deadline of 19 March when as many as half-a-dozen companies are expected to out in their updated bids.

Those invited to the binding round of bidding include Time Warner, Lionsgate, Liberty Media, Summit Entertainment, Access Industries and Elliott Management.

The six companies invited to the latest round of due diligence, include management presentations of MGM financial data.

It is said that those still involved appear disheartened by the data they have seen. Now it is to be seen as to how many of the six bidders will be inspired to put in their money.

Moelis & Co., MGM's consultant in the bidding process is eager to pry an acceptable offer from one or more parties as the Lion has a big interest payment to lenders by 31 March while the studio's credit facility expires on 8 April.

The main problem is MGM's large but heavily exploited film library that hasn't seen addition of new titles in years.

Time Warner might be in the best position to make a compelling offer. The Lion film library would fit well with its Warner Bros. catalogue which boasts pre-1986 MGM titles originally acquired by Ted Turner.

On the other hand Lionsgate also has good operational synergies with MGM. But if it bids in the second round, the mini-major is unlikely to offer as much as in the first, non-binding round when it placed a $1.5 billion bid.

Many familiar with Moelis' bidding process predict that second-round offers won't be much more than $1.5 billion. An earlier round of nonbinding offers topped out at roughly $1.7 billion.

If that proves the case, it would be unlikely that lenders would agree to a sale and instead begin negotiations of a pre-packaged bankruptcy designed to shift equity to debt holders.

MGM's current owners include Providence Equity, TPG Capital, Sony, Comcast, DLJ Merchant and Quadrangle.