Variety yesterday picked up a story that the ever famous Lions studio, MGM is heading for another possible garage sale. Several sources say they expect that MGM will be auctioned off within this few weeks.
"This would mean that a major, such as Time Warner, could buy the MGM-UA library while another entity might acquire the logo, and yet another deal could be made for United Artists. Sources speculated that Kirk Kerkorian, who has already bought and sold MGM twice, might buy the logo once again.
Last summer Harry Sloan was bounced as MGM's CEO and Stephen Cooper, a specialist in restructuring companies (Krispy Kreme was one of his projects) started meeting with bankers with the aim of restructuring some $3.7 billion in debt. There was speculation that the combined assets of MGM may now yield as little as $1.5 billion in the present market." - Variety
It was reported on Green Tea Movie that MGM might be heading for a bankruptcy with a possible halt on movie franchises like The Hobbits and James Bond. It is a big archieves of 4,000 titles in the library of MGM, yet those mounting debts are just unbearable.
With any sort of auction would need approval of two-thirds majority of MGM's exclusive bondholders, the choices left would be a pre-packaged bankruptcy or late bidding by Time Warner.