MGM–the studio with perhaps the most -storied name in Hollywood–is expected to enter a pre-packaged bankruptcy and re-emerge as a company that primaily produces TV shows for cable, Variety reports [Note: Variety is behind a firewall and may charge you read its article].
According to the article, "With Spyglass toppers Gary Barber and Roger Birnbaum having signed a nonbinding letter of intent to become co-chairmen and co-CEOs of the troubled studio, a search is under way for someone to oversee development of TV programming, [a] source said."
The story explains, "The concept is that TV programs could be developed from MGM’s robust library, including ‘Robo Cop,’ ‘Silence of the Lambs’ and ‘Dances With Wolves.’ Although MGM made its foray into television 55 years ago with ‘MGM Parade’ on ABC, its TV operations have never had nearly the success that the studio has enjoyed on the bigscreen. Currently, its ‘Pink Panther’ and ‘Pals’ air on Time Warner’s Cartoon Network."
MGM has about $4 billion in debt, the article notes, with about 100 creditors. The plan would be to come out of the bankruptcy reorg with no debt, the article says.