Mike Fleming from Deadline New York writes: Despite the speculation that India conglomerate Sahara India Pariwar might swoop in and buy MGM for $2 billion, it doesn’t sound like management is taking it that seriously. At least not based on this internal memo I just got hold of:
To All Employees: We wanted to take this opportunity to provide you with an update on the Company’s restructuring efforts. Recently we announced that our lenders have again agreed to extend the forbearance period relating to certain of our debt obligations and we are appreciative of their ongoing support throughout this process.
We recognize that throughout this restructuring process, there has been a great deal of speculation about the Company’s future in the media and elsewhere which can be very distracting. We appreciate the focus, hard work and dedication you all have demonstrated for the last year. We can assure you we are working to bring this process to a conclusion as quickly and thoughtfully as possible. However, the process is still evolving and we appreciate your understanding that there are not a lot of definitive answers at this stage. More..
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Once again, reported by multiple sources, MGM’s due date for debt has been extended. Today’s September 15 has turned into tomorrow’s October 29, but that date will likely not matter either. The Hollywood reporter says:
As expected, more than 100 holders of almost $4 billion in MGM have agreed to a seventh debt forbearance agreement with the Century City-based studio. The Lion now has until Oct. 29 to pay lenders $250 million in principal and more than $450 million in owed interest.
But it’s likely the payments never will be made, as the struggling Lion is expected to creep into bankruptcy court before that with a plan for turning debt into lender equity.
This may not mean more delays for ‘The Hobbit’ as there seems to be a plan and leadership at work. As reported last week and updated in the L.A. Times blog:
MGM signed a nonbinding letter of intent with Spyglass founders Gary Barber and Roger Birnbaum to take over management of the Century City-based studio. That deal must be ratified by MGM’s board of directors and more than 100 creditors, who are expected to swap their debt for equity as part of a prepackaged bankruptcy proceeding.
Stay tuned!
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While we await further news of what today, 15th September 2010, has in store for MGM, it being the deadline for the studio’s sixth debt extension, there’s behind-the-scenes rumblings that seem to indicate good tidings might be on the way.
In an exclusive over at Deadline regarding a film titled “The Hunger Games” slated to go into production next year, Mike Fleming reports that director Sam Mendes (who had been tapped to direct the next film in the James Bond franchise) was one of the candidates met by studio chiefs over at Lionsgate, the producing studio for the film “The Hunger Games”. However, the report goes on to say that Sam Mendes,
“bowed out of contention last Friday… because the MGM picture is clearing up and it looks like production on 007 could begin by late summer or early fall, 2011 with Mendes at the helm and Daniel Craig back in the Aston Martin.”
It might be recalled that a couple of months ago development of the new James Bond film had been suspended indefinitely due to the uncertainty surrounding the future of MGM. The turnaround of the Bond situation probably means good news for the Hobbit movies too.
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Things are moving in the Hobbit world; there are rumors afoot of castings, contracts, scripts and even start dates. It’s all very exciting and if you were at TORn’s panels at DragonCon this year, you were prepared for it!
Yes, TheOneRing.net was present again this year at one of the world’s biggest fan-based convention. Staffers from TORn ran a table over the course of the weekend, where we had the great pleasure of chatting to fans, meeting regular TORn visitors, catching up with old friends and faithful supporters, and introducing newbies to the joys of the website. Over the four days of the convention we gave out freebies, distributed candy to those brave enough to answer Tolkien trivia, sold t-shirts to help keep the website attending conventions and events, and provided the fun of the ‘Don’t you know you’re [sic] Sam?’ photo opportunity! Apologies Samwise fans, but we decapitated Sam in a hobbit standee, so folks could pose with their head in his place; and all kinds of aliens, cartoon characters, heroes and villains stepped up over the weekend to
offer to ‘share the load…’ For images from the weekend click here. Lots more written details after the break! Continue reading “The official ‘DragonCon 2010’ report (and photos!)”
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Close on the heels of the news that Gary Barber and Roger Birnbaum of Spyglass Entertainment had signed a non-binding letter of intent to take over the management of MGM, there’s news by Bloomberg hitting the interweb that points to more progress in that direction:
MGM creditors will be asked to approve a restructuring and pre-packaged bankruptcy plan for the studio within the next week or two, according to two people with knowledge of the situation.
Under the plan, MGM would file for Chapter 11 bankruptcy after obtaining creditor approval, with the goal of emerging from court protection by the end of the year, said one of the people, who asked not to be named because the details aren’t public.
Thanks to messageboard member Eruonen for the heads-up.
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A New Zealand film website has declared, from its own independent sources, that Neill Blomkamp (District 9) will be directing a pair of movies based on J.R.R. Tolkien’s “The Hobbit.” It was also kind enough to point out that we broke the story as a possibility in June.
The Kiwi site isn’t known for rumor mongering so this is a definitely an interesting possibility that might be pointing to increased Hobbit activity and a semblance of leadership at MGM and a future for these potential gigantic hits (and fan favorites) to get made. Thanks to message board user Magpie for posting this in our forum and to Ataahua for alerting us to the post. You can read the original June forum response here. And, of course, stay tuned for the latest on all things Hobbit, Tolkien and Middle-earth.
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