MGM’s Future In Dire Straits?

The big industry story over the weekend has been via Deadline Hollywood Daily and their breaking of the news that MGM Pictures is allegedly out of money.

According to insiders, the Lion needs $20 million in short-term cash flow to cover overhead, and an additional $150 million to get through the end of year and continue funding its projects. A multi-hour conference call with bondholders to request interest payment relief apparently didn’t solve much of anything either – the company remains in $3.7 billion of debt and creditors are pushing for bankruptcy as a viable option to at least get some of their investment back.

If that were to happen though, it puts the fate of two major projects in mild question – Peter Jackson’s “The Hobbit” and the next James Bond film which MGM once again retains full rights to now that its two-film deal with Sony has ended. However in both cases neither Warner Bros. or Eon Productions would let any such problem affect them as both have more than enough clout and finances to continue the projects no matter what the status of MGM.