MGM’s management and creditors are reportedly divided over the best plans to take the troubled studio forward.
Hedge funds control a large amount of the studio’s debt and are ignoring Time Warners bid that has been on the table since March. Meanwhile management want to go ahead with a restructuring plan to raise $1 billion.
The hedge funds want the studio to cut overheads and continue at much lower cost; however, they have no movie industry experience so it is not clear if this would be a workable option.
And until they can move forward in some capacity Bond 23 remains grounded.