MGM and bankruptcy...

[wraithfodder]

The latest on MGM from the Los Angeles Times ( http://lat.ms/a3zdw8 )

 

 

Spyglass proposes MGM reorganization plan, including prepackaged bankruptcy [updated]

October 7, 2010

Update, 3:35 p.m.: MGM announced that under the proposed plan, its approximtaely 100 lenders will exchange their more than $4 billion in debt for 95.3% of the reorganized studio following its exit from bankruptcy.

Spyglass Entertainment and two of its subsidiary companies, Cypress Entertainment Group Inc. and Garoge, Inc., will merge into MGM and together control the remaining 4.7%. The subsidiaries own the first 15 films produced by Spyglass, including "Seabiscuit," "The Sixth Sense," and "Bruce Almighty," all of which will added to MGM's existing library of about 4,000 titles. Those 15 Spyglass movies are valued at about $85 million.

 

MGM's previous owners, such as private equity firms Providence Equity Partners, TPG Capital, Sony Corp. and Comcast will see their stakes wiped out

 

REST AT LINK ABOVE. It's probably the more detailed of the articles out there.

This one - http://www.hitfix.com/articles/first-step-for-bonds-return-mgm-formerly-puts-its-eggs-in-spyglass-basket - said "MGM's relatively small television operations which include producing the "Stargate" franchise will likely remain unaffected." and that's all I could find via Google news for 'MGM' and 'Stargate" in a seach. I dare say that compared to the Bond franchise, Stargate is considered small fry, at least by the press/PR folk.

 

Comments

[black-raven135.livejournal.com]

Thanks for posting the news.
Money is tight now in La La land.....stars are not making what
they used to make and people seem to be scrambling....but what
gets me is the junk that is being produced. Somehow they find the
$$$$ for it.......and many times there are no box office receipts
to even cover the basic production. I forget what I read recently
about a film which was really 'anticipated' and it fell flat at the
box office.......seems $7 million in receipts which means they lost big time by the time the stars were paid and crew, location etc.

[wraithfodder.livejournal.com]

well, the 80s/90s were just too much spending (same as house flipping, bankers bonuses (insert big GRRRRRR), etc.) but yeah, schlock seems made all the time. Definitely seems like quantity over quality.

[black-raven135.livejournal.com]

"............quantity over quality."

Well said..........proving time and time again sadly.

[ladyniko.livejournal.com]

Yeah, and MGM didn't learn its lesson the FIRST time - new PTBs over the years have destroyed what equity they built up after the first bankruptcy when the whole library was basically sold to Ted Turner for a song.

[black-raven135.livejournal.com]

***nods***
That is often the case and unfortunately it is also true of individuals who manage to get out of debt only to return later to same mess.
:-/
Fortunately I grew up in a family whose philosophy was need rather than want, but unfortunately that is not what we hear every day.