March 20 : 2010
MGM bidding deadline pushed to Monday or beyond
Variety reports today that the deadline for second-round bids in the MGM auction has been pushed from Friday, March 19 to at least Monday, March 22 and possibly beyond. No indication yet as to whether any of the three remaining bidders, Time Warner, Access Industries, and Lionsgate, have actually submitted bids.
It seems quite possible that even if they do bid, the amounts won’t satisfy MGM’s owners. If so, this is what the Variety story says might happen:
If bids fall short of expectations or no bids materialize, MGM could attempt a recapitalization through investment bank Qualia Capital through a cash infusion and a debt-to-equity transaction that would allow MGM to remain in business as a stand-alone entity.
Since turnaround specialist Stephen Cooper came on board as chairman, the debt holders have agreed three times to hold off on receiving debt payments, with the most recent extension going to March 31. MGM’s facing repayment of its $250 million revolving credit line in early April and a $1 billion payment on its $3.7 billion debt in July 2011.
Though this story doesn’t mention it, Rupert Murdoch’s News Corp. has been mentioned as a possible source for a recapitalization.



