Thursday, August 19, 2010

MGM Reorg Plan Devised

It seems the saga of the MGM bankruptcy that has prevented the Hobbit films from being made might be getting closer to ending. Spyglass Entertainment has devised a plan that may eliminate $4 billion in debt that has prevented the studio from moving forwards with its main purpose of making movies.

I don't have a business degree so don't really understand the ends and out. Might be better off reading the Hollywood Reporter and Variety articles about this. To sum, the plan is turn ownership of the studio to a new set of owners who will have a percentage ownership into the studio. They in turn will provide around $500 million in capital so the studio can start making movies again. I am sure it is more complicated then this but the idea is the re-org could be completed by December which means movie production could start back up by early 2011. What impact this will have on The Hobbit is unknown but at this point any news is good news. Links via OneRing.

No comments:

Post a Comment