TheOneRing.net has alerted us to an LA Times story from May 24 that suggests a tangled situation indeed as MGM’s debtors try to find someone to take charge of restructuring the studio.

So it’s interesting to read a contrasting story posted yesterday by Variety that gives us some information about a question that has occurred to many of us: How has MGM kept operating during these tough times? What pays the bills?

Its major source of income, it turns out, is television. Though feature filmmaking has become almost moribund at MGM, its TV division is forging ahead:

Even as the Lion faces a very uncertain future, execs on the TV side of the studio are quietly working to set up new business and expand existing ventures, such as the This TV digital movie service. Feature activity at MGM is largely in limbo, save for a handful of long-gestating projects, because of the studio’s debt crisis and larger financing commitments required by movies.

But Jim Packer and Gary Marenzi, the industry vets who are co-presidents of MGM Worldwide TV, are still actively hunting for deal opportunities and partnerships to keep some level of activity going at the studio while its long-term situation is sorted out by the steering committee of creditors who hold the bulk of MGM’s $3.7 billion in outstanding debt.

Last week, MTV ordered 12 hourlong episodes of a smallscreen rendition of the Lion’s 1985 cult-fave pic “Teen Wolf,” to be co-produced by MGM and MTV, with MGM controlling worldwide distribution rights. The “Teen Wolf” pilot is being screened for international buyers in town this week for the L.A. Screenings.

On Tuesday, MGM announced a carriage extension agreement with Tribune Broadcasting for its 18-month-old This TV service, a 24/7 movie channel designed to be carried by local broadcast TV stations as a digital multicast offering. MGM was the most aggressive of Hollywood’s majors in developing a programming service for local stations as the nation made the transition to all-digital broadcasting.

This TV started slowly in its November 2008 debut, but it has since been picked up by stations covering about 85% of U.S. TV households. The new pact with Tribune gives This TV a clearance in New York for the first time, via Tribune WPIX-TV, as well as expanding to other Tribune stations in Miami, St. Louis, San Diego and Grand Rapids, Mich. The channel is also getting significant carriage on cable systems, as local stations push for the inclusion of their This TV subchannel as part of retransmission consent deals with cable operators.

MGM continues to produce new segs of the “SGU Stargate Universe” drama for Syfy. And execs are actively mining the Lion’s extensive film and TV library for remakes and reboots along the lines of the “Teen Wolf” model. MGM’s Chris Ottinger spearheaded the packaging and sale of the project to MTV.

MGM’s dealmaking ability is certainly compromised by the cloud of the debt problem that became acute for MGM late last summer, and the auction process that drew underwhelming bids from a handful of suitors. But Packer’s focus is on making the most of what they’ve got — and with a library of 4,100 pics and 10,000 hours of TV programming, they’ve got a fair amount to work with.

MGM also has TV assets abroad: “Beyond U.S. shores, the Lion has MGM-branded movie channels operating in 130 countries, with an aud base of about 75 million. It’s a steady source of income that has helped keep the lights on for Leo during its most recent rough patch.”

All this doesn’t mean that the filmmaking side isn’t in a messy state. Still, it’s nice to know that MGM isn’t a complete basket case.