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Hollywood is having the same financial ups and downs as the rest of business world.
On the down side, MGM , which is almost $4 billion in debt, said on Thursday that its lenders agreed to let it skip interest and principal payments until July 14. In a news release, the struggling studio said “The lenders took this action in support of the company’s ongoing efforts to evaluate long-term strategic alternatives to maximize value for its stakeholders.” While MGM is treading water to keep from sinking, the creditors are attempting to fend off a take over bid by Time Warner, whose offer they feel is way too low. The creditors are instead trying to figure out a way to restructure the company and keep it as a stand-alone studio.
On the upside, In the first major film financing deal to hit Hollywood since the economic downturn, Village Roadshow Pictures Group on Thursday closed on a $1 billion credit facility to finance its current and future slate of movies. Bruce Berman, chief executive of Village Roadshow Pictures had this statement to make about the lucrative deal.“This new financing enables us to expand upon the solid foundation we’ve established within the industry and grow our slate of tentpole and star-driven films.”
Village Roadshow, which was formed in 1997, has been one of the industry’s leading financiers and producers of studio released motion pictures. Sixty-one of their library of sixty-five movies have been released in partnership with Warner Brothers. This is the longest running partnership that the venerable studio has had with an independent production studio.
Outside of these ups and downs, a lot of new projects are in the works for the folks out in Hollywood land last week. Here is around up of the movies audiences can look forward to seeing.