‘Bond’, ‘The Hobbit’ At Risk From MGM Bankruptcy?

Things are looking desperately bad at MGM right now. Reports suggest that the movie studio’s debts stand at just under $4 billion and that bankruptcy seems imminent. And this situation could obviously harm even the biggest franchises on the studio’s books.

According to MTV Movies, MGM management are claiming they need a $20 million short-term cash injection to cover basic overheads and $150 million to get through the next few months and see in the new year. That money would be used as funding for both The Hobbit and the next James Bond movie.

The studio is asking creditors to waive interest payments until February 2010 to give MGM a chance to start the recovery process. But both stockholders and bondholders appear to be content to let a bankruptcy occur, even though this would lead to the inevitable loss of those aforementioned key franchises.

MGM has only just recovered the Bond franchise after the two-picture deal at Sony ended with Quantum of Solace. The studio sees it as an important marker on its road to recovery and losing the series again would mean the situation becomes even more dire than it already is.

There clearly isn’t an easy way out of this but I just hope everyone sees sense and gives MGM time to put its house in order. I’d hate to see the end of such an important part of Hollywood, especially over some bad debts.