MGM announces bankruptcy plan

[Captain Shaw]

Hollywood film studio Metro Goldwyn Mayer has begun plans to file for bankruptcy protection in an effort to rid itself of $4bn (£2.5bn) of debts.

The company behind the James Bond films wants more than 100 of its creditors to agree plans to enter chapter 11 bankruptcy while it restructures.

http://www.bbc.co.uk/news/business-11498081
I hope they can sort themselves out so we can get a new bond film.

 

[tharpdevenport]

Good for them, bad for which ever company(ies) are expecting that HUMONGOUS bulk of money.

 

[Reverend]

I don't think any of MGM's creditors have any realistic expectations of getting their money back via a nice fat check in the post. Having said that, as I understand the broad strokes of this kind of bankruptcy, it doesn't liquidate the assets but instead leaves the creditors with a stake in the company. Not so great in the short term but in the long run it can be quite profitable if the company in question is able to make a dramatic come back. I don't know if that stake is permanent, sellable or determined by agreement, but either way they will get something.