<![CDATA[The year long struggle to stabilise MGM's financial situation included reports of overtures made by the Broccoli family to Warner Brothers studios, encouraging them to bid (then stay in the bidding) for MGM. Apparently to no avail as the debt holders seemed to have dismissed the bids received setting a course for restructuring with a managed bankruptcy.
In the 11th hour, just as the Spy Glass deal is nearing a up or down vote from the MGM debt holders a new wrench is thrown into the mix as a new more substantial, albeit unsolicited bd for MGM is received.
According to new reports an Indian company has made a $2 billion dollar bid for MGM. Sources tell us $2billion dollars is close to the amount MGM’s debt holders had wanted earlier for MGM. Supposedly none of the bids received before went over the $1.5 billion dollar mark. (Including the Broccoli backed Warner Brothers bid.)
Blomberg News reports this new company, Sahara India Pariwar, is receiving backing from the Broccoli and Wilson families as well.
Barbara Broccoli and her stepbrother Michael G. Wilson are part of the Sahara India offer and would receive an undisclosed equity stake in MGM if it succeeds, said the person, who sought anonymity because the discussions are private.
It wasn’t clear whether Broccoli and Wilson would have a management role in the Los Angeles-based studio, the person said. Sahara India, based in Lucknow, offered $2 billion for MGM’s more than $3.7 billion in debt, the Associated Press reported on Sept. 17.
The overture comes as MGM’s creditors are scheduled to vote this week on a pre-packaged bankruptcy plan to restructure the company’s debt by converting it to equity in a merger with Hollywood producer Spyglass Entertainment. Sahara India has interests in finance, infrastructure and housing, media, consumer products, manufacturing and services, according to its website. Its entertainment operations include cable-television channels, film production and cinema chains.
The talks involve Sahara India’s “mutual interest” with MGM, Abhijit Sarkar, head of corporate communications at Sahara India Pariwar, said in an e-mailed statement yesterday. He declined to add to the statement today, saying “it’s too early to comment on the issue.”
Susie Arons, an outside spokeswoman for MGM, declined to comment, as did Stephanie Wenborn, a spokeswoman for the Broccolis’ London-based EON Productions.
A curious twist, just as it seemed the MGM drama was coming to a successful conclusion.
These new developments beg the question as to what the true state of Bond had been, despite rumours of Bond 23 filming starting sometime next year.
What caused the Broccoli family to make this move? Would Bond be in bad shape with MGM restructured and under new management? As some have suggested would Bond production be given a lower priority and/or were they facing the possibility of working with much smaller budgets.
Could this move by the Broccoli family have a chilling effect on their relationship with the new MGM management should this deal fall through?
Difficult questions, that surely will be answered in good time. Hopefully we will find out more as the MGM drama continues to unfold.
Discuss this at the DCinB Classic Bond Forum
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