Further MGM debt extension agreed

Lenders agreed to extend the period for debt repayment for a fifth time to allow the troubled studio to arrange its affairs prior to a sale – or more likely now, a pre-packaged bankruptcy. Until the studio’s future is decided it is unlikely work on Bond 23 will progress.

This additional extension means creditors will waive payments until July 14th on the $3.7 billion debt.

The company is currently looking at restructuring options rather than a sale, due to the low bids put in earlier this year. Of the potential buyers only Time Warner retains its interest in MGM.