MGM Files for Bankruptcy

After extended negotiations, MGM has finally filed for Chapter 11 bankruptcy. Under a pre-packaged deal, investors with equity in MGM will lose their equity, while those holding MGM debt will become partial owners. From this article in The LA Times:

Under the pre-packaged bankruptcy plan, MGM’s $4 billion worth of debt, upon which it could no longer afford to pay interest, will be converted into more than 99% of the equity in the studio, which is valued at $1.9 billion. Spyglass principals Gary Barber and Roger Birnbaum will become co-chief executives and co-chairmen, running a slimmed-down MGM with significantly less overhead and start producing new movies, including a James Bond sequel and two films based on “The Hobbit” that will be co-financed with Warner Bros.

The main point of interest for Stargate fans is that the studio will be seeking a new infusion of funding to start producing new movies. From this article in Variety:

“Upon its exit from bankruptcy, MGM expects to raise approximately $500 million in financing to fund operations, including production of a new slate of films and television series,” the studio said Wednesday. “MGM will retain ownership of all of its assets.”

Now that the bankruptcy is finally moving forward, perhaps MGM will have a new look at the feasibility of making the long-awaited straight-to-DVD movies for Stargate: SG-1 and Stargate Atlantis. That is only speculation, however.