Unfortunately the recession is hurting all of us, including MGM, who, according to Deadline Hollywood, are trying desperately to figure out a way to avoid filing for bankruptcy, forcing them to sell off the rights to their biggest (and most profitable) franchises, like James Bond and The Hobbit.
Are James Bond and 'The Hobbit' in Trouble?
See, MGM owes their creditors somewhere in the arena of $3.5 billion, which, in case you aren't too good at math, is a ridiculously high number. So what MGM wants to do is to not have to pay interest payments on that debt through February 2010 so they use that money ($170 million or so) to finish funding their 2010 slate of films, which include The Hobbit.
Naturally their creditors aren't all too pleased with the situation, and are inclined to let MGM go bankrupt so they can at least be paid. MGM doesn't want that to happen because then they'll be forced to sell off their most prized possessions, like James Bond. All in all it's a pretty sticky mess, and an unfortunate one because it kinda feels like there might not be enough cash to fund The Hobbit, and relinquishing it to someone else could mean an even longer delay before it hits theaters.
For the sake of some very cool movie properties, I hope MGM gets what they need to keep doing what they do best. Your thoughts?
Like it? Share it:
Erik DavisFandango Bloggers
Erik is a leading movie commentator who has worked for outlets such as AOL Moviefone and Movies.com.
Next Article by Lizerne GuitingHordes Came Out at Midnight for 'Paranormal Activity'