MGM seems to be content with just ignoring all of their debtors and letting the cobwebs gather in the corners. Every time we hear about MGM news, it has a lot to do with them doing nothing, and potential buyers looking at the books and running away.
Well Spyglass Entertainment is telling them not to plan a midnight move just yet.
Spyglass Entertainment is attempting to turn all of MGM’s debt into lender equity. However, “A decision to file the restructuring plan as a prepackaged bankruptcy reorg must be approved by 51% of all lenders and a group representing two-thirds of the amount owed.” The planned timetable is to put the plan to a vote soon after Labor Day, file for bankruptcy next month, and if all goes well, a reorganization before year’s end.
This could be yet another potential suitor who will take a closer look and then say nevermind, but this seems to be the best offer yet.
In a few short weeks, they will vote on Spyglass’ plans to reorganize and breath some life back into this studio, and if its approved MGM will exist in some form (or close doors and Spyglass will take over their properties)
My worries are that if MGM just collapses, the properties it owns will end up in legal battles that could take years to sort out while its debtors would all want to lay claim to these titles. Its all MGM has that is worth anything anymore.
Lets cross our fingers and hope that it gets sorted so we can one day see another Bond film or The Hobbit.
