Its hardly news that MGM has been facing financial difficulties and that its missed its last few creditor payments. I also hear they are doing paperwork by candlelight and have no heat.
So it was announced that MGM has officially declared Chapter 11, Protection from bankruptcy to give them 30 days to sort out their crap.
The company, which was pressured into filing by investor Carl Icahn, is seeking a 30-day reorganization period in which to pay its creditors.
As part of the reorganization, Spyglass Entertainment will take over management of MGM.
Spyglass has its foot in the door here, and will likely strike deals with the creditors with the anticipation of The Hobbit and the potential of another Bond film.
That and there is always a healthy library of minor films in that could fetch a pretty penny if they are willing to part with them for other studios to re-distribute or remake. Those rights have to be worth a few bucks right?
I think MGM’s days are numbered, and what will be left is going to be a studio bidding war for the rights to the properties that still mean anything.
No word on if or how this might affect the current Hobbit production, already in the works.
