MGM requests sixth debt extension
Uncertain whether lenders will be willing to grant more timeMGM has officially requested a sixth extension of the deadline for making big debt and interest payments to lenders.
The move had been expected, though it's uncertain lenders will be willing to grant more time unless the Lion provides more detail of its proposed corporate restructuring. Burdened by almost $4 billion in debt, MGM is expected to shift most ownership in the studio to a group of more than 100 lenders.
There's also a search afoot for new equity funding for the cash-strapped studio. Lenders have until July 13 to respond to the debt forbearance request.
Under a current agreement with the lenders group, MGM must make a $250 million principal payment and fork over more than $200 million in owed interest on July 15.