MGM Studios face forced bankruptcy

£253 million interest due in September

MGM Studios could be forced into bankruptcy on September 15 when £235 million in debt interest is due to be repaid.

The studio has had to stall the production of several film projects due to lack of funding, including the next film in the James Bond franchise, two films based on J.R.R. Tolkien‘s The Hobbit, a remake of Red Dawn and a Robocop remake from director Darren Aronofsky, reports The Hollywood Reporter.

A forced bankruptcy would take ownership away from the MGM consortium and spell the end of MGM’s producing and distributing days in Hollywood.

The studio’s total corporate debt is over £2.5 billion, and it has repeatedly asked for extension of repayment deadlines in order to avoid bankruptcy.

The fear of losing the rights to the lucrative James Bond franchise has been a major factor in the money lenders’ reluctance to force the studio into involuntary bankruptcy.

Several companies are considering a strategic partnership with MGMMetro-Goldwyn-Mayer – including Yahoo, though one executive revealed the talks have become “a joke”, explaining: “There is a real fatigue among the lenders after all of the forbearance agreements.”