Not even Bond can get MGM out of this one

Things are going so badly with MGM’s restructuring review that a forced bankruptcy is a real possibility by Sept. 15.

Lenders don’t want to lose control of the studio’s lucrative James Bond movie rights. So one of them could still dig deeper to provide enough new equity capital to make a voluntary restructuring feasible. Or if that option fails, the Century City studio could obtain a seventh extension of its debt forbearance agreement with its 100-plus lenders.

This problem has persisted for a year.

The studio has secured six forbearance agreements, or delays of the deadline for paying principal and interest on its senior bank debt. Strapped by almost $4 billion in total corporate debt, MGM repeatedly has gotten lenders to postpone recoupment of a $250 million revolving credit facility and $200 million or so in related interest payments.

Meanwhile, if you’re hoping for any MGM movies to be released in the upcoming months, you may want to put that on hold. Like the next James Bond movie, two films based on J.R.R. Tolkien’s book The Hobbit, a planned “Three Stooges” movie and a “Robocop” remake.

So, not a total loss, then.

MGM’s problems persist, for 6th time

MGM has won its sixth debt extension, but money problems continue. That’s not so good for you fans of “The Hobbit” or James Bond films.

Bond films are put on hold indefinitely as the studio tries to figure out a way to make some cash. The Lion plans on remaining on film productions sidelines while issuing catalog releases for home entertainment and licensing new video games. Currently, Activision has the upcoming “GoldenEye”

Many are calling for the Bond franchise to go to the highest bidder, and some say the same about MGM’s share of “The Hobbit”. Warner Bros. holds the other half of “Hobbit”.

Century Studio debtholders have given MGM until Sept. 15 to pay up. The Lion has about $4 billion of debt.

Summit Entertainment, Spyglass, and others are circling the bleeding Lion with their own ideas on how to restructure. MGM tried to find a buyer for their studio, but Warner Bros.’s offer of $1.5 billion was considered too low.

New Podcasts Posted

Hey everybody, the new podcasts are up. On STC News, we’ve got Hollywood Headlines, with Peter Jackson and Guillermo del Toro sharing stylists as well as duties on THE HOBBIT. Plus Paul Haggis is bringing CRASH to the small screen. Then there is a new Soundtrack News, with a look at the scores from CASSANDRA’S DREAM and RAMBO. Then there are 2 Special Edition: Best Soundtracks of 2007 segments, with a look back at the music from 300, HOT FUZZ, SUPERBAD, and the Oscar-nominated score from 3:10 TO YUMA.

Plus, this week’s STC Previews show is up, with some sassy reviews by Mieke Buchan of THE EYE, STRANGE WILDERNESS, OVER HER DEAD BODY and CARAMEL, with a First Glimpse at the big screen adaptation of MAMMA MIA! (The exclamation point is a part of the title. I didn’t put it there. I’m not excited about it at all.)
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