MGM seeks new debt waiver

The Wall Street Journal – Film studio Metro-Goldwyn-Mayer Inc. is in talks with creditors to get further leniency on its debt payments as the two sides continue negotiations about a restructuring plan, said people familiar with the matter.

MGM, buckling under a nearly $4 billion debt load, wants lenders to grant a waiver on debt payments until at least the end of June and perhaps longer, these people said, adding that details haven’t been hammered out. MGM’s current waiver expires at the end of next week.

The waiver request—MGM’s fifth since November—comes as the studio remains locked in negotiations over a restructuring plan that would hand control of the company to creditors.

MGM declined to comment.

MGM has focused its negotiations on a small group of hedge funds invested in the studio’s bank debt. These talks have become important because an auction earlier this year failed to yield bids that would placate the creditors.

Creditors had held out for better offers as the studio’s bank debt traded around 60 cents on the dollar, which implied a value of around $2.4 billion. In the past month or so, the debt has plunged and now trades around 42 cents on the dollar.

The creditors’ committee, led by J.P. Morgan Chase & Co. and hedge funds Anchorage Advisors and Highland Capital Management, is negotiating a plan to take control of MGM through a debt-for-equity swap, the people said. The plan would be implemented through a “prepackaged” bankruptcy, lining up many creditors’ approval prior to an actual filing.

Those creditors have sought advice from other media executives on how to restructure the studio and potentially to manage the restructured company.

Those they have met with include: former News Corp. executive Peter Chernin, former Viacom Inc. executive Jonathan Dolgen, Spyglass Entertainment executives, Revolution Studios founder Joe Roth, Qualia Capital managing partner Amir Malin and Liberty Media Corp.’s Overture Films CEO Chris McGurk, they said.

Some of those media executives couldn’t immediately be reached. Arnold Robinson, a spokesperson for Mr. Roth, however, said that the executive “is very, very happy with what he’s doing right now.” A spokesman for Mr. Chernin confirmed that a meeting with MGM and Mr. Chernin took place at the request of one of the creditors, but he added that running MGM is not something Mr. Chernin is actively pursuing. Two people close to Mr. McGurk, who helped turn around MGM once before as vice-chairman and chief operating officer, said he isn’t interested in returning.

Some of these executives have proposed to help finance MGM, one of these people said. But creditors want to tap their own money to finance the studio, rather than dilute their holdings, this person said.

Before pursuing a standalone plan, creditors had been hoping to fetch at least $2 billion for the studio in a sale. Time Warner Inc. made a bid for about $1.5 billion, people familiar with the matter said, and the offer remains on the table as the studio negotiates with creditors. Time Warner Chief Executive Jeff Bewkes said Wednesday that Time Warner doesn’t need MGM but a deal “could make sense” at the right price.

Len Blavatnik’s Access Industries has dropped out of the bidding process, said a person familiar with the situation, and doesn’t appear inclined to provide any capital to the studio. Access declined to comment.

MGM’s woes trace back to debt taken during a buyout that handed control to private-equity firms Providence Equity Partners, TPG, and media companies Sony Corp. and Comcast Corp.

The studio released only one new film last year, and a recent release, Hot Tub Time Machine, had a soft landing at the box office. The family controlling MGM’s James Bond franchise recently shelved production of the next film.

Turnaround specialist Stephen Cooper, brought in by MGM’s owners as part of a broad management shakeup in November, told lenders last month that the studio needed an additional $1 billion to finance six to eight new movies. It is unclear whether creditors are willing to support that level of investment, and some discussions have centered on giving MGM just $500 million.

The people familiar with the deal said that creditors haven’t decided whether to leave some debt on the studio or to entirely clear the studio’s balance sheet. One person said creditors could aim to leave a little less than $1 billion in debt on MGM’s books.

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Raymond Benson's The Union Trilogy gets exclusive hardback printing

A limited exclusive hardback edition of Raymond Benson’s James Bond: The Union Trilogy – Three 007 Novels has just been made available in the US.

Originally published as a trade paperback in 2008, this 007 collection brings together High Time To Kill, Doubleshot and Never Dream of Dying.

Featuring an introduction by Benson himself, the omnibus further adds in the complete, unedited version of the author’s first 007 short story, 1997’s Blast From The Past.

This new edition is published by Fall River Press and is available as a Barnes & Noble Stores exclusive. Literary Bond collectors and fans can track down a copy at their store or order online at a discounted price:

• Order the limited hardback edition of James Bond: The Union Trilogy – Three 007 Novels from BN.com

Stay tuned to the CommanderBond.net main page and our Discussion Forums for all the latest literary James Bond coverage.

Ian Fleming's James Bond elephant

An all-new mascot for secret agent 007 has taken to the streets of London—the James Bond elephant.

As reported at IanFleming.com, keen-eyed 007 fans will find the James Bond Elephant located by the London Eye. Designed by Oliver Lloyd and Lucy Fleming, the elephant is just one of many in the Elephant Family charity campaign for the endangered Asian alephant.

With more than 250 brightly painted life-size elephants currently situated throughout the city, the London Elephant Parade will attract an estimated audience of 25 million with the goal of raising a projected £2 million and benefiting 20 conservation charities in the UK alone.

Running from May to July 2010, this is London’s biggest outdoor art event on record. All of the painted elephants will go up for sale by auction. For further details on the campaign, visit the www.elephantfamily.org and www.elephantparadelondon.org websites.

Stay tuned to the CommanderBond.net main page and be sure to visit our Discussion Forums for all the latest 007 news from the world of James Bond.

Time Warner now lone MGM bidder

Variety – Len Blavatnik’s Access Industries has dropped out of the bidding for beleaguered MGM, leaving only Time Warner Inc. as a potential buyer.

Reps for MGM and Access had no comment but a source close to the situation indicated Friday that Access has withdrawn its offer after a deadline passed to accept the bid.

For Blavatnik, buying MGM would have established him as a certified showbiz player, but one who would have probably sold off the rights to James Bond and the Hobbit. MGM put itself up for sale in November, drawing a trio of binding offers in mid-March. Lionsgate bailed out of the bidding a week later.

The Time Warner and Access offers for MGM were believed to be in the $1.5 billion range, far below the $2 billion threshold price sought by MGM and its debtholders.

MGM’s last announcement came on March 31 when it received 1 1/2 months of relief from payments on its debt, with its lenders agreeing to skip receiving payments until May 14—the fourth time since September that lenders to MGM have made such an agreement, aimed at giving CEO Stephen Cooper enough time to restructure the storied studio.

MGM hasn’t commented since then but a knowledgeable source indicated Friday that the studio will probably seek another extension on the forebearance period on debt payments to support the studio’s ongoing efforts to improve its financial position.

EON Prods. toppers Michael G. Wilson and Barbara Broccoli jointly announced last month that they’ve put plans on hold for the next James Bond pic due to the “continuing uncertainty surrounding the future of MGM and the failure to close a sale of the studio.”

MGM’s prospects received some positive news on Wednesday when Time Warner CEO Jeff Bewkes said an acquisition of MGM “could make good sense” at the right price. Bewkes made the announcement during a conference call to discuss first-quarter earnings.

MGM carries debts of $3.7 billion. MGM’s assets include its name and logo, the United Artists operations, a library with more than 4,000 titles, the James Bond franchise, half of The Hobbit franchise and a barebones film and TV operation.

MGM’s lone release this year, Hot Tub Time Machine, has grossed $47 million after six weekends.

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Raymond Benson's Choice of Weapons 007 anthology to launch on 12 September

The official book launch party has been announced for Choice of Weapons: Three 007 Novels, the second James Bond anthology from author Raymond Benson.

According to the author’s official website, the 007 anthology will be made available at Centuries and Sleuths Bookstore in Forest Park, Illinois on 12 September 2010. Benson is currently in negotiations to arrange for Janet Davies, ABC 7 news anchor and celebrity (as well as a character in his 1999 Bond short story Live at Five), to attend the event.

However, lucky fans attending the Printers Row Book Fair this June in Chicago will have the exclusive chance to pick up a copy of the book several months ahead of publication. Benson will be appearing at the event on 12-13 June where a special print run of the book courtesy of publisher Pegasus Books will be for sale.

Otherwise, the 864-page trade paperback will hit bookstores on 17 August. Bringing together Zero Minus Ten, The Facts of Death and The Man with the Red Tattoo, this collecton will further include the Midsummer Night’s Doom and Live at Five short stories, both originally published in 1999.

Literary 007 fans will recall that 2008 marked the release of The Union Trilogy—the first anthology of Benson Bond adventures. As was the case with that collection, Benson will once again provide an all-new introduction for this one.

• Order the US paperback edition of Choice of Weapons: Three 007 Novels from Amazon.com

Keep watching the CommanderBond.net main page and visit our always active Discussion Forums for the most up-to-date literary James Bond coverage on the web.

SilverFin makes the cut in Puffin's top 70 books

Charlie Higson’s SilverFin has been honoured by appearing in Puffin’s list of its top 70 books, drawn up to mark the publisher’s 70th birthday.

The novel, which introduced us to Young James Bond, is one of four books to feature in the “Best Heroes” category.

Higson’s The Enemy was also recognised in the “Best Blood and Guts” category of Puffin’s list.

The list features a selection of books from Puffin’s rich history from classic novelists such as Jules Verne, Lewis Carroll and L. Frank Baum to contemporary writers including Eoin Colfer and Rick Riordan. Five of the 70 novels were penned by children’s favourite (and You Only Live Twice screenwriter) Roald Dahl.

Georgina Hanratty, manager of south London children’s bookshop Tales On Moon Lane, told guardian.co.uk, “The Puffin list continues to look remarkably strong. So many of the books it promoted in the seven decades have just gone on and on. They provide a long, robust spine to children’s books. And the recent acquisition of authors such as Eoin Colfer, Meg Rosoff and Charlie Higson just adds a fresh new layer.”

Puffin recently published Monstroso, a novella written by Charlie Higson as part of its Pocket Puffins series, also launched to celebrate the publisher’s 70th birthday.

Keep watching CommanderBond.net for all the latest Young Bond news.

Quantum of Solace Definitive Edition 2-Disc DVD set listing online

A brand new listing has appeared online at Australian DVD website EzyDVD for a 2-Disc Definitive Edition of Daniel Craig’s Quantum of Solace.

While details are extremely limited at the moment, this new release is due out on 28 July 2010 and will feature lenticular packaging (something that was briefly done for the James Bond DVDs in 2008).

Cover artwork, special features and whether or not this so-called Definitive Edition will also be available on the Blu-ray format remain a mystery for the time being.

CommanderBond.net readers will recall that Quantum director Marc Forster revealed in April 2009 that he was working on a special edition of the film that would include audio commentaries and behind-the-scenes featurettes, among other extras that were omitted from the original release.

At the time, Forster was also debating whether or not to include the original cliffhanger ending to the film as a deleted scene. It was in this one-minute long scene that 007 confronts Mr. White and utters the ‘Bond, James Bond’ line.

‘It wasn’t cut because of that sentence,’ Forster said at the time. ‘It was cut for other reasons. I think it worked but it is still better how it is. It’s not on [the original DVD release] and we are still discussing whether we should put it in the next one. On one hand, I think it would be cool for the audience to see it. On the other hand, I think it would be more interesting to keep it a mystery.’

As soon as we learn more details regarding this Quantum of Solace Definitive Edition DVD, we’ll let you know. Just keep your browsers pointed to the CommanderBond.net main page and our Discussion Forums for all the latest details.

MGM lenders to vote on debt extension

he Hollywood Reporter – Figure on yet another extension to MGM’s debt forbearance agreement.

The Lion has gotten four such extensions previously, including one delaying more than $400 million in interest and principal payments until May 15. With a lenders steering committee set to meet Monday, electronic ballots will be sent early next week to a broader group of debtholders in an attempt to give MGM and its restructuring team even more breathing room.

The proposal is expected to pass, giving MGM at least another several weeks to work on its restructuring.

Strapped with a crushing $3.7 billion in debt, MGM and consultant Moelis & Co. tried unsuccessfully to find buyers for the studio and in recent weeks has been discussing with top industryites means of securing new capital to keep the lights burning in the Lion’s Century City lair. The process is expected eventually to result in two additional things: the appointment of a successor to current MGM CEO Stephen Cooper and a shift of most studio equity from a current consortium to the lenders group.

MGM’s owners include Providence Equity, TPG Capital, Sony, Comcast, DLJ Merchant and Quadrangle.

Cooper is a turnaround veteran brought in for the sale-or-restructuring process. Companies considering possible new equity investments in MGM include Lionsgate, Access Industries, News Corp. and Qualia Capital.

Time Warner—which topped bidders in the failed MGM auction with a $1.7 billion offer—isn’t interested in partial ownership. The Warner Bros. parent could re-engage with the Lion in talks regarding a modestly increased bid for the entire studio, but that’s considered a long-shot scenario.

As always, stay up-to-date with the latest James Bond news by visiting the CommanderBond.net main page and our Discussion Forums.

UK's Heritage Motor Centre to feature James Bond cars on display

James Bond cars will be the main attraction at the UK’s Heritage Motor Centre at the end of this month.

As reported in the Coventry Telegraph, the museum in Gaydon, Warwickshire, will be giving visitors the chance to get an up close and personal look at numerous 007 cars during an exhibition set to run from 29 May until 6 June.

Some of these notable vehicles will include the Aston Martin DBS from Daniel Craig’s Quantum of Solace and Bond’s Aston Martin Vanquish and Zao’s Jaguar XKR from Pierce Brosnan’s Die Another Day.

Kids attending can also learn the art of being a secret agent at a special spy school. Activities will include making their own spy gadgets, learning the art of secret message writing and solving clues around the museum.

Penny Tyler, marketing officer for the Heritage Motor Centre, said: ‘With our special Bond Week, spy school and a host of exciting and nostalgic motoring events, the Heritage Motor Centre has something for everyone to enjoy this May half term.’

The museum will be open from 10:00am to 5:00pm during the James Bond exhibition week. For full information, including ticket prices, phone the museum’s events line at 01926 645120 or visit the official website.

Stay tuned to the CommanderBond.net main page and be sure to visit our Discussion Forums for all the latest 007 news from the world of James Bond.

Time Warner says buying MGM makes sense at the right price

Business Week – Time Warner Inc. Chief Executive Officer Jeff Bewkes said that buying the Metro-Goldwyn-Mayer Inc. film studio ‘could make sense, but only at the right price.’

Time Warner doesn’t need to buy the studio and has walked away from acquiring it before, Bewkes said in response to a question on the company’s earnings conference call today.

Keep your browsers pointed to the CommanderBond.net main page and our Discussion Forums for all the latest James Bond news.