MGM Finally File For Bankruptcy
Faced with $US4 billion (£2.5b billion) in debt from a buyout five years ago, MGM put itself up for sale several months ago. But despite several bids, the company has failed to attract bis that would satisfy its lenders.
The plan now is to ask its lenders to forgive the debt in exchange for turning over 95% stake to Spyglass Entertainment when it exits bankruptcy protection.
Spyglass, a relatively small production company that has had a few big hits (notably The Sixth Sense, Star Trek and Invictus) but also some horrendous duds (Dinner For Shmucks, Leap Year, The Happening) would get MGM’s library and merge its own films into the collection.
Earlier in the year work halted on the new James Bond movie after MGM encountered financial difficulties.
MGM is one of the world’s oldest established and famous production companies – everyone’s familiar with the roaring lion at the beginning of an MGM picture having made over 1000 films in almost a century.
It’s almost impossible to list the mountain of films they produced – everything from classics like Ben-Hur, North By Northwest and Singin’ In The Rain to the James Bond franchise, Rocky series….basically if you’ve ever been to the cinema, you’ve seen an MGM film.
Not only that but MGM Animation Studios famously produced Tom & Jerry, one of the most recognisable and best loved cartoons of all time. It’s sad news that another big studio is shutting its doors (after the sad demise of Miramax earlier this year).