June 27, 2016  

Bankrupt, MGM Can't Afford to Release New Movies

November 4, 2010 (3:45 am) GMT
The company behind 'James Bond' film franchise and the upcoming 'The Hobbit' has filed for protection once it can't control the debt.

Movie executives at top Hollywood studio Metro-Goldwyn-Mayer have filed for bankruptcy. The Los Angeles Times reports studio bosses have a debt that has spiraled out of control and they cannot afford to release new movies.

MGM filed for protection early on Wednesday, November 3 after the studio's leading creditors struck a deal with tycoon Carl Icahn, who reportedly owns almost 20 per cent of the company's debt. He has been lobbying for a merger between MGM and Lionsgate.

He is now supporting a plan under which the chief executives of film production and finance company Spyglass Entertainment will run MGM once it exits Chapter 11 bankruptcy. News of the new deal that will effectively secure the future of the studio behind the "James Bond" film franchise and the new "Lord of the Rings" prequel "The Hobbit" broke on Friday.

Executives announced the company had been saved by a debt-restructuring deal with Spyglass Entertainment, the U.S. company behind last year's "" and recent comedy "".

A statement from MGM bosses reads, "MGM will now move expeditiously to implement that plan, which will dramatically reduce its debt load and put the company in a strong position to execute its business strategy. MGM is appreciative of the lenders' support."

TODAY'S HEADLINES

  1. 'Game of Thrones' Stars Talk About the Bloodbath and Power Transfer in Season Finale
  2. Deadpool Makes Surprise Appearance in 'X-Men: Apocalypse' Japanese Trailer
  3. 50 Cent Arrested in the Caribbean for Saying 'Motherf**ker' at Music Festival
  4. Adele Burps While Taking Selfie With a Fan Onstage. See the Hilarious Video
  5. Rihanna Previews New Song 'Sledgehammer' From 'Star Trek Beyond'
  6. Mariah Carey Shows Off Bare Butts at Her DJ Debut in Las Vegas
  7. Justin Timberlake Attacked by Twitter Users for His Comment on Jesse Williams' BET Awards Speech
  8. Artist of the Week: Calvin Harris