MGM bankrupt

[mooncliff]

Metro-Goldwyn-Mayer, the legendary film studio famous for classic movies such as The Wizard of Oz, Gone with the Wind and Singin' in the Rain, is set to file for bankruptcy within days.

MGM is facing bankruptcy after creditors voted for a reorganisation under a deal with rival firm Spyglass.

MGM faces bankruptcy in part because the DVD and film catalogue business attached to its 4,100-title film library no longer generates enough to service the firm's debt.

http://www.guardian.co.uk/business/2...ued-bankruptcy

http://www.youtube.com/watch?v=QhzbzwPNgXA

[LargoWinch]

Re: MGM bankrupt

"MGM was founded in 1924" -Wiki

Is there any entity or anyone paying down debt?

Seems to me that one after another, management is only worried about servicing the interests...

[mooncliff]

Re: MGM bankrupt

Yes, the idea that future earnings would service debt, at a time when the cost of data is dropping to zero, does not seem reasonable at all.

Aside from the financial changes that will happen by 2020, so many other things in everyday life will change in ways we can only vaguely imagine. Maybe we should write a letter to ourselves to be opened January 1, 2020.

[GRG55]

Re: MGM bankrupt

Metro-Goldwyn-Mayer, the legendary film studio famous for classic movies such as The Wizard of Oz, Gone with the Wind and Singin' in the Rain, is set to file for bankruptcy within days.

MGM is facing bankruptcy after creditors voted for a reorganisation under a deal with rival firm Spyglass.

MGM faces bankruptcy in part because the DVD and film catalogue business attached to its 4,100-title film library no longer generates enough to service the firm's debt.

http://www.guardian.co.uk/business/2...ued-bankruptcy

http://www.youtube.com/watch?v=QhzbzwPNgXA

LOL. I note the linked Guardian article makes no mention of the current "equity" owners of MGM. According to Wiki:

"...The leading bidder proved to be Sony Corporation of America, backed by Comcast and private equity firms Texas Pacific Group (now TPG Capital, L.P.), DLJ and Providence Equity Partners. Sony's primary goal was to ensure Blu-ray Disc support at MGM; cost synergies with Sony Pictures Entertainment were secondary..."

No wonder MGM is loaded with debt.

And now? From the Guardian article link:

"...Spyglass Entertainment, a small production company half-owned by private-equity firm Cerberus Capital Management, is now set to take over the company..."

Cerberus is, of course, infamous for three things:

1. Appointing John "strong Dollar" Snow, Hank Paulson's predecessor as Treasury Secretary, as its Chairman in October 2006;
2. Buying 51% of GMAC the same year;
3. Buying, with other investors, 80% of Chrysler Corporation in 2007.

'Nuff said...

[FRED]

Re: MGM bankrupt

Who could have known?

June 13, 2007
Eric Janszen interviews John Challenger, CEO Challenger Gray & Christmas

Q: Back in October 2006, we predicted a recession in the U.S. by Q4 2007 largely as a result of declines in real estate, but also due to the self-reinforcing nature of increased unemployment and declining housing prices. GDP growth came in at a surprisingly low 0.6% in Q1 this year. Do you see a recession coming later this year?
A: Only if we get a surprise, such as problems caused the LBO bubble.

Q: How has recent buyout activity affected employment and where do you see the trends going from here?
A: Many corporations have been left with impaired balance sheets. This poses the major risk to the economy.

Q: Bond securitization, such as CDOs in the mortgage industry and CLOs in private equity, has for the past few years created new credit to fund commercial real estate growth and private equity deals. Now that the market for these debt products is slowing down, we expect a slow-down in these sectors. For example, the market for mortgage related CDOs declined from $30 billion in April to $2 billion in May. Are you seeing any indication yet of weakness in either commercial real estate market or in industries which have been the target of private equity deals?
A: No indications yet, but a recession caused by an increase in bankruptcies and layoffs due to corporate over-indebtedness is a plausible scenario.

[Slimprofits]

Re: MGM bankrupt

DVDs died long ago....Shit moves quickly these days.

[don]

Re: MGM bankrupt

Has the endless, headlong search for "new" devices to make obsolete our current entertainment hardware over, replaced by virtual use and FIRE-fancy fees? Movie streaming videos, cloud computer programs and storage ... we are screwed and tattooed. FIRE will fade away ... right. And be voted out of power