MUMBAI: Burdened by a debt load totaling
almost $4 billion, MGM executives were hoping
to get enough hit movies into theatres quickly
enough to solve its money woes internally,
but with growing signs of restlessness among
studio creditors, the studio is on the look
out for any sort of capital restructuring
that can avert a forced Chapter 11 bankruptcy
big motivator: MGM's long-standing hold
on the 007 franchise could come into play
in a court-supervised reorganisation. To
avoid that, MGM might consider giving up
a sizable portion of their equity holdings.
is owned by a consortium including Sony,
Comcast, TPG Capital and Providence Equity.
No one is suggesting that talks between
the studio and its creditors have yielded
a specific game plan. But some sort of voluntary
restructuring could emerge in the absence
of any obvious white-knight investor.
scenario would see a creditors-led restructuring
in which the lenders are allowed to swap
a sizable portion of MGM debt for studio
equity. Current debt-holders include Elliott
Associates, a New York-based hedge fund
closely tied to Hollywood producer Ryan
Kavanaugh that's been buying up hundreds
of millions in distressed MGM debt.