In the sometimes weird world of business, the news that a storied studio such as MGM is nearing an official filing of bankruptcy is actually a good thing, especially for The Hobbit fans. According to Reuters, Metro-Goldwyn-Mayer has put together a proposal that would wipe away about $4 billion in debt and put founders of Spyglass Entertainment in charge. In return for forgiving the debt, the current creditors would be converted to owners with 95.3% ownership of MGM with rest going to Spyglass.
The reason this is good news is it finally frees up the finances of MGM to return back to financing movies and other projects rather than continue to attempt to interest payments on the existing debt. Current creditors have until October 22nd to approve the plan. If approved, it would probably guarantee the green light for The Hobbit films and allow filming to start in January as currently planned.
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