Another Debt Extension Request Coming from MGM

MGM soon will request a sixth postponement of its big debt and interest payments as the Century City studio seeks to restructure its finances and possibly tap a new CEO. Lenders holding nearly $4 billion in Lion debt are expected to agree to the extension, though nothing is guaranteed and a full-press effort continues to finalize a restructuring proposal sought by the lenders. The studio formally will request the latest extension about a week before the July 15 deadline on a $250 million principal payment and $200 million-plus in owed interest. That could buy MGM at least several additional weeks to flesh out financial details of its corporate restructuring. But a proposed business plan, likely involving a corporate partnership with another film company, would help sell yet another extension of the debt forbearance to a frustrated group of more than 100 lenders. As usual, there’s a ton more about this over at the Hollywood Reporter, so for the full skinny, click the link and read on.
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