MGM is on its last legs… again.
Despite being put up for auction (and not accepting any of the pitiful bids) the people MGM owes money to have decided to once again give them a little breathing room and extending their grace period. Again.
The lenders also agreed to postpone an April 8 deadline on a $250 million payment due on debt principal.
In a statement Wednesday, MGM said: “Lenders agreed to extend the forbearance period and therefore will not seek remedies in connection with the nonpayment of interest and principal due on the company’s bank debt, including the revolving credit facility, through May 14, 2010.
This gap will give MGM and the debtholders time to decide what to do next, whether its to explore bids or perhaps panhandling in a Hobbit costume on Hollywood Blvd.
You know, if you keep extending things like this, they will never take you seriously.
Hopefully the combined efforts of Hot Tub Time Machine, the Red Dawn remake, and The Hobbit (even though I despise J.R.R. Tolkien’s works) will be enough to bring them out of their debt.