MGM’s creditors extend debt deadline by six weeks
Metro-Goldwyn-Mayer Inc. is getting another stay of execution.
The beleaguered movie studio has received a six-week extension on a looming due date for interest payments on $3.7 billion in debt while its banks and bondholders debate the future of the company.
MGM confirmed that its 140-plus lenders have agreed to delay the deadline from Friday until May 14. That’s the fourth extension MGM has received since October.
In addition, JPMorgan Chase & Co. has agreed to delay the due date for payments on a $250-million revolving credit facility to May 14 from April 8.
The expected moves give MGM’s stakeholders more time to decide whether to accept a $1.5-billion acquisition offer from Time Warner Inc. or a competing bid from industrialist Len Blavatnik’s holding company, Access Industries, both of which came in below the $2 billion-plus that the studio’s creditors were seeking.
MGM could also pursue a restructuring that would keep it as an independent company or enter bankruptcy proceedings.
“The lenders took this action in support of the company’s ongoing efforts to strengthen its financial position, and MGM appreciates their continued support throughout the process,” an MGM spokeswoman said.