PE-backed Hollywood movie production company MGM looks for potential sale
Private equity-owned Metro-Goldwyn-Mayer, the iconic Hollywood movie production company, is exploring a potential sale as it bows under the weight of a heavy debt load, according to reports.
MGM has seen its lenders extend a forbearance to 31 January and is now reportedly considering a sale to parties including Lions Gate Entertainment Corp, Time Warner Inc, and Viacom Inc.
The company, whose back catalogue includes such classics as the James Bond films, is said to be struggling with debt obligations of $3.7bn from its 2005 buy-out, and payments on a $250m revolving credit facility due April 2010.
MGM was bought for around $5bn by a consortium made up of Sony Corporation of America and Comcast in association with US private equity firms TPG and Providence.
Harry Sloan, who was appointed as CEO by the consortium after it acquired the company was ousted in August of this year and replaced with an "office of the CEO", made up of production head Mary Parent, CFO Bedi A Singh and restructuring expert Stephen F Cooper.
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Private Equity News» By News Type» Deal News
Private Equity News» By PE Sector» Specialist PE Sectors
Private Equity News» By Region» North America» United States
Private Equity News» By News Type» Deal News
Private Equity News» By PE Sector» Specialist PE Sectors
Private Equity News» By Region» North America» United States
