The state of the world economic climate keeps claiming more and more victims as the weeks and months tick by, MGM Studios appears to be one of the latest victims in these uncertain times.
It has been reported that the firm is struggling for survival under a $3.7 billion mountain of debt which is due to be repaid in 2012.
Here is the official statement from an MGM spokesperson
MAY 14, 2009 – Metro-Goldwyn-Mayer Inc. is discussing its financial results in a call with its lenders today. The company is reporting that its cash flow for the fiscal year ended March 31 was in line with its budget and that the company is in compliance with all loan covenants. On the call, MGM also will say it is exploring options for optimizing its capital structure and has begun talks with a steering committee of its lenders as part of the process. The company has hired Moelis & Co. as financial advisor to help it in these efforts. The company is committed to its business plan, which calls for it to remain independent, continue its motion picture production and television activities and leverage the value of its film library.