Friday May 15, 05:39 PM
MGM hires adviser to restructure debt: reports
LOS ANGELES (AFP) - Hollywood studio Metro (Xetra: 725750 - news) -Goldwyn-Mayer has hired investment bank Moelis & Co to help it restructure mammoth debts of around 3.7 billion dollars, several media reports said Friday.
The studio behind classics such as the James Bond films and "The Wizard of Oz" is currently paying almost 300 million dollars a year in interest, and must make a one billion dollar repayment in 2011.
The revered studio was bought by a group of investors in 2004 for around five billion dollars but the global credit crunch and recession has stymied efforts to raise equity in order to reduce its debts.
MGM funds its movie production through its massive film library, which boasts around 4,000 titles and more than 10,000 television episodes, an archive which earns the company around 500 million dollars annually.
According to the Los Angeles Times, MGM chief executive and chairman Harry Sloan told investors Thursday that the company's cash flow for the fiscal year ending in March was in line with its budget.
However reports have said revenues from MGM's library have fallen however because consumers had cut back on spending on DVDs.
The Times said MGM had quashed speculation it could be seeking a buyer by stating it remained "committed to its business plan, which calls for it to remain independent."
|
|
|
Send Article by Email
Send Article by IM
Blog This with Y! 360
Printable View
