Thread: MGM financial troubles won't stop The Hobbit
A recent proposal by MGM's new CEO Steve Cooper to defer interest payments on its debt load for the next three months on Thursday won a crucial endorsement from J.P. Morgan.
The investment firm leads a lenders steering committee that has been agitating for a dramatic restructuring of the Lion's operations and its ownership structure. In exchange for an agreement to limited interest forbearance, J.P. Morgan secured a few changes in existing debt terms.
Concern over MGM's hold on "Hobbit" is at the heart of the activity. In a 50-50 rights partnership with Warner Bros.' New Line unit, two "Hobbit" pics are being developed. [/quote:ohz1bo2w]
Will it stop it now? Who knows.