MGM Sale Expects to Elicit a Half-Dozen Bids

But if offers are too low, a restructure could be accepted

Last Updated: December 8, 2009 @ 7:09 AM

Hollywood should know better by the end of next month whether MGM will change owners or simply shift course.

An auction to elicit offers of interest in the studio is expected to yield a half-dozen or so bids by MGM’s next debt-service deadline of Jan. 31. But depending on how many of the 16 companies provided confidentiality agreements place bids — only two have agreed to confidentiality terms so far — the critical question is whether any of the offers is rich enough to satisfy the studio’s 150 debt holders.

If bidding falls significantly below $2 billion, MGM chief Stephen Cooper might be allowed to put together a simpler restructuring of current operations in lieu of a sale.

Read more from the Hollywood Reporter
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