Spare a copper guv....?

[davem]

http://www.laweekly.com/2009-05-21/n...llywood-style/

Now investment bankers Moelis & Co. have been hired to advise the studio on a potential restructuring and to explore options for optimizing its capital structure (i.e., talking to lenders about altering MGM’s long-term debt obligations). “You lower your interest payments, you free up cash to make more movies,” a source tells me. “With debt selling at a discount [50 cents on the dollar], every company is doing the same.”

I hope this new plan of attack can help. Because it’s vital to Hollywood that this buyer survive. Everyone knows that Mary Parent has been holding the studio together with the equivalent of chicken wire: specifically by partnering with studios left and right because they are willing to front the costs of each production. Things aren’t much better on the TV side. And if the auditors declare MGM technically insolvent, all hell breaks loose.

Honestly, I don't know if this could cause problems with the Hobbit movies - if MGM are unable to go ahead then doesn't Zaentz get the rights back?- & I would assume a bidding war among the studios follows - which may stop the current production altogether, & that throws out everybody's plans.