MGM has asked for and received a its seventh reprieve on nearly $450 million in debt payments, the beleaguered studio announced Wednesday.
The studio was scheduled to deliver a $250 million principal payment and over $200 million in interest to more than 100 lenders Wednesday. The deadline on the payment has been moved to Oct. 29.
The news comes as MGM is moving towards a pre-packaged bankruptcy deal. As part of that arrangement, Spyglass Entertainment and its founders Gary Barber and Roger Birnbaum would take over management of the venerable studio.
“The lenders took this action in support of the Company’s ongoing efforts to evaluate long-term strategic alternatives to maximize value for its stakeholders. MGM appreciates the continued support of its lender group throughout this process,” MGM said in a statement.
Spyglass would continue to operate independently, while MGM will produce a handful of movies each year, among them another James Bond film and “The Hobbit.” MGM’s money troubles have put the fates of those franchises in jeopardy.
MGM boasts a library that numbers over 4,100 titles, but has struggled to find a buyer throughout much of the past year. Lionsgate and Len Blavatnik's Access Industries were rumored to be circling the company, but the highest known bid is a $1.5 billion offer from Time-Warner.