MGM can breath easier for the next few months, but they are not ready to sit down in their fat pants just yet. Though an agreement was made to lessen the burden MGM is facing for the next few months, they are on probation and weekly financial reports and a solid recovery plan are going to be required.
MGM and the lenders have come to an agreement so the company won’t have to pay interest due on September 30, October 31, and November 30, 2009 and the studio now has enough cash to move forward with THE HOBBIT.
But MGM only has til December 15th to strengthen its financial situation and then it’ll be forced to pay again.
For these next three months, lenders will get weekly reports from MGM regarding its cash levels, a detailed restructuring proposal and updated valuation of its assets and other financial details.
This of course is good news for The Hobbit but it doesn’t mean that MGM won’t be facing the same worries 3 months from now if their proverbial socks are not pulled up.
I also wonder if this will have any impact on the proposed second part of The Hobbit, or any other MGM property.
a good question? some thing still not right.
I’m with Rod, where did their money go? They’ve had a few successful films in the last 2 years or so.
Of course no one is immune to the whole economic crisis, but after their license to print money with LOTR and everything James Bond, it makes you wonder what they’ve been spending their money on.