In another one of those “It’s so wacky, it could be true!” stories that tend to crop up today, over 100 of the various lenders to MGM Studios are meeting right now to decide the fate of the financially floundering studio.
The Hollywood Reporter‘s Carl DiOrio filed a report yesterday, explaining exactly what’s currently at stake:
Wednesday [was] the deadline on a $200 million-plus interest payment by MGM, whose credit facility expires April 8, forcing an additional $250 million payment to lenders. To get past those two deadlines, something like a 15-day extension of the most recent debt-forbearance agreement is envisioned.
MGM and its consultant Moelis & Co. have asked for a 45-day extension, but lenders seem in no mood to comply.
“The lenders are frustrated and disappointed with the bidding process,” a lenders-side source said. “They are also frustrated by the existing restructuring proposals, which amount only to pledges to do better.”
If what DiOrio’s source says is true, I can completely understand why the lenders wouldn’t want to grant the studio any more leeway. It’s like when you ask a teenager what he or she would do to bring his/her flunking grades up and the answer is, “<shrug> I dunno.”
Surely some serious grounding and a revocation of driving and texting privileges is order.
Related Posts: Trisha’s Take: MGM bankruptcy might not be terrible idea after all, James Bond franchise future in doubt and/or in safe hands