Aug 10 (Reuters) – Spyglass Entertainment is nearing an agreement to run Metro-Goldwyn-Mayer Inc once the film studio restructures $4 billion of debt this summer through the bankruptcy process, the Wall Street Journal said on Tuesday, citing people familiar with the matter. An agreement could come as soon as this week, valuing MGM at about $1.9 billion, the newspaper said, citing the sources. The sources also said MGM hopes to file a prepackaged bankruptcy in mid-September when its latest debt waiver expires, according to the Journal.
MGM creditors have spent the better part of a week with Spyglass co-heads Gary Barber and Roger Birnbaum negotiating the makeup of a board, and have worked out financial details, the newspaper said. More..
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As Peter Jackson makes progress — in theory — on getting “The Hobbit” moving forward again, Guillermo del Toro has a few things to say about the movie he spent two years developing. The genre auteur says he has no regrets about departing the New Zealand production, but says that anyone who think that MGM’s financial mess was the main culprit for his departure is oversimplifying the issue. “People kept misconstruing that it was MGM. It came from many factors,” Del Toro told 24 Frames in an interview at Comic-Con. “It wasn’t just MGM. These are very complicated movies, economically and politically. You have to get the blessing from three studios.” More..
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July 14 (Bloomberg) — Lions Gate Entertainment Corp., the independent film and TV producer, has approached creditors of ailing Metro-Goldwyn-Mayer Inc. to help shape a plan to acquire the studio, two people with knowledge of the situation said. Lions Gate Vice Chairman Michael Burns has been meeting in New York with investors who hold some of MGM’s $3.7 billion debt, according to the people, who requested anonymity because the discussions are private. More..
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The Hollywood Reporter is reporting today that MGM will potentially be requesting for a 6th extension on its debt and interest payment. Below is an excerpt from their article:
“Lenders holding nearly $4 billion in Lion debt are expected to agree to the extension, though nothing is guaranteed and a full-press effort continues to finalize a restructuring proposal sought by the lenders. The studio formally will request the latest extension about a week before the July 15 deadline on a $250 million principal payment and $200 million-plus in owed interest.
That could buy MGM at least several additional weeks to flesh out financial details of its corporate restructuring. But a proposed business plan, likely involving a corporate partnership with another film company, would help sell yet another extension of the debt forbearance to a frustrated group of more than 100 lenders.”
On the other hand, the article also states that “MGM executives would like to hold onto its share of the “Hobbit” rights as long as possible, but some lenders are lobbying for a sell-off to raise funds.”
Lastly, there’s a loose mention of shooting being set to commence in January 2011 (as opposed to the current time-frame of November 2010) but take this at face value as the article does not cite any sources on this one.
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NYMag.com says that Neill Blomkamp will not direct a pair of ‘Hobbit’ movies to be produced by Peter Jackson. The online magazine cites an insider at William Morris Endeavor, Blomkamp’s agency, with the info that not only will he not be directing, he was never contacted by Warner Bros. or MGM.
TORn didn’t say Blomkamp would direct, only that a source claimed to have viewed a film breakdown and a lot of the sources info fit with other whispers from other sources. The shortest line between Blomkamp and the film would run though New Zealand and Jackson, not L.A. studios, but NYMag isn’t going to make the report unless its source is solid. Read the whole account right here.
We know Jackson will be in Los Angeles next week and have heard he is there now meeting with studios who are trying to get him to sit in the director’s chair. We have further heard some of his high-placed team is in London working on casting.
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With all the Hobbit news flying around airwaves and websites, TheOneRing.net spoke with Fictional Frontiers about the process of breaking the news that Guillermo del Toro was leaving ‘The Hobbit’ and the possibilities of who might replace him and the state of things in general. You can listen to MrCere‘s interview that starts just before the 22 minute mark. Also featured are James Berardinelli of www.reelviews.net and finally the great author George R.R. Martin. Catch the whole show right here.
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