×

MGM in need of sixth debt extension

Studio asks lenders for more time on $3.7 billion debt

MGM, beset by its massive $3.7 billion debt load, has asked its lenders for a sixth extension on its debt payments.

Studio had no comment, but knowledgeable sources said that MGM’s request was made to its approximately 140 creditors on Thursday — six days before the existing extension expires.

The move has been expected, although the Lion hasn’t issued a formal statement since May 13, when it obtained a fifth extension.

MGM put itself up for sale in November and drew three formal bids, although offers from Access Industries and Lionsgate were later withdrawn. Time Warner’s offer came in well short of MGM’s $2 billion target. During recent weeks, MGM is believed to have met informally with top execs from Lions-gate, Spyglass Entertainment and Summit Entertainment as possible partners that could run the studio and bring in production funds.

Lionsgate is in the midst of an intense battle for control of the company with Carl Icahn, but Icahn hasn’t completely dismissed the notion of an MGM deal.

Popular on Variety

MGM’s assets include the James Bond franchise and a half stake in “The Hobbit” films, its name and logo, the United Artists operations, a library with more than 4,000 titles and a bare-bones film and TV operation.

MGM is still planning to release a remake of “Red Dawn” in November and 3D pic “Cabin in the Woods” in January.

Peter Jackson has been in talks to take over as director for the two “Hobbit” films in the wake of Guillermo del Toro’s departure. Co-financer has denied del Toro’s assertion that the delays in getting a “Hobbit” greenlight were due to a lack of a resolution to MGM’s ownership situation.

More Film

  • Richard Jewell

    The Big Lie of 'Richard Jewell' (Column)

    For a man who was so enraged at the administration of Barack Obama that he spent his 2012 Republican Convention speech lecturing an empty chair, Clint Eastwood has made a number of conventional, level-headed — one might even say liberal — political dramas. Films like “Invictus” and “J. Edgar” and “Midnight in the Garden of [...]

  • Oscar Isaac Star Wars The Rise

    Oscar Isaac Has Never Felt Like a 'Star Wars' Insider

    Unlike his “Star Wars: The Rise of Skywalker” co-stars Daisy Ridley and John Boyega, Oscar Isaac had already established a long and acclaimed acting career before J.J. Abrams cast him as ace X-wing pilot Poe Dameron in 2015’s “Star Wars: The Force Awakens,” including standout roles in 2006’s “The Nativity Story” and 2011’s “Drive,” and [...]

  • Les Arcs to Showcase New Projects

    Les Arcs to Showcase New Projects by Jonas Alexander Arnby, Agnieszka Smoczyńska

    Denmark’s Jonas Alexander Arnby, France’s Alain Gagnol and Jean-Loup Felicioli, and Poland’s Agnieszka Smoczyńska are among up-and-coming directors from across Europe whose latest projects will be presented at the 11th Coproduction Village of Les Arcs Film Festival. This edition of Les Arcs Coproduction Village will showcase a total of 22 European projects spanning 19 countries. [...]

  • 'Chez Jolie Coiffure' Review: Hair Salon

    Film Review: 'Chez Jolie Coiffure'

    Shortly before the credits roll on “Chez Jolie Coiffure,” a customer in the eponymous hair salon asks her stylist, Sabine, if she has any plans to go home this year. Out of context, this sounds like the kind of standard, empty small talk one often makes while having one’s hair cut: what good movies you’ve [...]

  • Best Netflix original movies

    The 10 Best Netflix Movies of 2019

    This time last year, Netflix estimated that it would release 90 original movies in 2019. At the time, the number seemed outrageous: That’s more than four times the number Warner Bros. made in the same 12-month period — and more than any human would ever care to watch. Guess what: Turns out that 90 was a [...]

More From Our Brands

Access exclusive content