MGM has been having financial problems for a while, and now it looks like the company will have to sell off a large part of its assets if it hopes to keep afloat.Â The movie studio restructured this past summer in order to move some of the $3.7 billion in debt around.Â While the studio does have The Time Machine, The Zookeeper, and the remake of Red Dawn coming out mid to late 2010, the biggest movie on the company’s docket has to be The Hobbit, and The Hobbit 2, which could end up making as much or more than the Lord of the Rings films did years ago. The Hobbit two-parter are scheduled for a 2011, and 2012 release.
There are two options facing the company now; sell-off completely, or sell off its 4,000 title film library, which includes the James Bond, Die Hard, Robocop, Stargate, and Showgirls movies and hope that the money earned from the library can finance the company for a while longer.
Any sort of auction would need approval of a two-thirds majority of the bondholders, and a couple of the bondholders insist they have not been contacted as yet. Some sources believe a pre-packaged bankruptcy is still an option, and there is still an expectation that Time-Warner might make a last eleventh hour bid.