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MGM Receives 5th Extension From Creditors

This past week, lenders of MGM granted a fifth extension to the studio for their outstanding loans and gave the deadline of July 14th to get it figured out.  No doubt the turmoil with MGM will have an effect on The Hobbit movies as it considers to limbo back in forth in pre-production.  It is clear that many of the actors are anxious to get the show on the road, but if MGM’s debt problem continues further, there may be more delays.  The following is a quote from The Wall Street Journal on the matter:

“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.”

We will see what effect this has on The Hobbit itself, however, in times past, Peter Jackson has frequently reminded people to not listen to the public banter and that everything is going as planned.  Who knows, but they’ll figure it out…maybe we should call on Gandalf.