Article from Digital Spy.

Hollywood studio MGM reportedly needs $170 million to get through to the end of the year.

The company requires a $20 million short-term cash injection to cover overhead and $150 million to start shooting on Peter Jackson and Guillermo del Toro's The Hobbit.

The news emerged from a heated MGM conference call, in which bondholders became "loud and very upset", reports Deadline Hollywood.

"The implication was that it's teetering on bankruptcy," a source told the website.

The conference call was made to ask creditors to forgo interest payments on MGM's $3.5 billion debt until next February, freeing up cash that the studio can spend on putting movies into production.

MGM fears that bankruptcy will mean losing the rights to the James Bond franchise, which it regained control of from Sony after the latter's two-film deal expired with the release of Quantum Of Solace. MGM executives are reportedly concerned that the studio will not be able to support itself without the 007 films.

This may be the reason for the Delay in the Stargate movies. What will happen if MGM does go under? Will Stargate survive?

There is a lot to be gained by others - if MGM does file for bankruptcy then the assets of the company will be sold for a lot cheaper than market value - I would think that along with the James bond franchise the Stargate movie rights would be much sought after especially if they go for below market value.

Be interesting to see if the creditors have the stomach especially in this environment for the long haul back to solvency.

My feeling is that this is a time when a lot of corporates will want to write down many of their bad debts - much easier to get writedowns and writeoffs past boards in this current climate than it would be when things start improving this removing the excuses.

soap box by hood

PS Gut feel - I think they are gone but will be repalced by another owner - Name MGM should continue though.

Oct 2/2009 MI6 website
"Hollywood studio Metro-Goldwyn-Mayer has secured a forbearance agreement with its lenders, winning some breathing room and liquidity as it continues to grapple with looming debt payments - Reuters reports.

The studio, which has enlisted a restructuring specialist to help turn it around, faces debt obligations of $3.7 billion stemming from its 2005 buyout, plus payments on a $250 million revolving credit facility due April 2010.

Home to a renowned film library, including James Bond movies, MGM said the forbearance agreement, which expires December 15, exempts it from interest payments of an undisclosed amount as it continues discussion with lenders to develop a new capital structure and support a long-term business plan. ...."

Who'd have thought that Bond movies produce that much in royalties that they could be a life-preserver for an MGM-sized corporation.

There you go - there is life in them thar MGM hills yet

Fat Lady on standby - but not required just yet