MGM has received its seventh extension of debt forbearance from its lenders. The news was announced just as its sixth debt extension expired. The new expiration date is October 29. In prior cases news such as this has not been seen as a good thing as it has only prolonged MGM’s current predicament, however this time is different. “The lenders took this action in support of the company’s ongoing efforts to evaluate long-term strategic alternatives to maximize value for its stakeholders,” MGM said. “MGM appreciates the continued support of its lender group throughout this process.”
MGM is expected to enter a prepackaged bankruptcy soon and re-emerge debt free by the end of October. Spyglass Entertainment’s co-heads Gary Barber and Roger Birnbaum recently signed a letter of intent to run MGM where they will steer the company towards greater emphasis in scripted and reality television shows for cable TV.
Recently Deadline reported that director Sam Mendes took himself out of the running to direct Suzanne Collins The Hunger Games because of MGM’s recent progress. The site further speculated that Bond 23 could potentially start shooting in late summer or fall 2011.