MGM likely to face forced bankruptcy

by DeLadurantey Law Office, LLC on August 11, 2010

The film studio MGM still has over $400 million to pay to its over 100 creditors as its sixth debt forbearance agreement extension.  If MGM is unable to pay this by the time its extension is up it will face forced bankruptcy.

In order for MGM to avoid forced bankruptcy, the studio will need to obtain a seventh extension.  If this does not work its only hope is that its lenders will come up with new equity capital.  Fortunately for the studio, its lenders do not want to lose rights to an upcoming James Bond film so they are trying to provide the needed capital.

If MGM does face forced bankruptcy, the ownership of the studio will be turned over to its lenders and it will most likely not continue film production and distribution.

If you or someone you know is in need of debt negotiation services, contact the Milwaukee debt negotiation attorneys of DeLadurantey Law Office, LLC at 414-377-0518 to learn more about your rights.

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