MGM/Pathe Bankruptcy Hearing To Be Slated

A hearing date will be set this week on the involuntary Chapter 7 bankruptcy petition filed against MGM/Pathe Communications.

Last week, the company asked U.S. Bankruptcy Judge Arthur Greenwald to expedite the proceeding before $365 million in bonds become due May 28 if the bankruptcy is not dismissed.

The bond agreements require MGM/Pathe to pay off the notes in full if the petition isn’t dropped 60 days after the March 29 filing date – a demand that MGM/Pathe could not currently meet.

The company has been trying to settle $12 million to $17 million in claims owed to the dozen petitioning creditors. A $145 million loan the company is waiting to receive from Credit Lyonnais Bank Nederland hangs on the claims being settled.

In documents filed with the bankruptcy court last week, MGM/Pathe pleaded: “Absent the immediate dismissal of this case, MGM/Pathe’s ability to conduct its traditional business… will be substantially if not totally eliminated.”

Also, MGM/Pathe failed to file its already delayed annual 10-K results April 19, giving no explanation for the tardiness or plans for an extension.

Filed Under:

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Scene News from Variety

Loading