One year after MGM (Metro-Goldwyn Mayer) came out of bankruptcy the company has managed to secure $500 million in new loans from lenders who will help the company retire debt it took on when emerging from court while providing the revolving credit facility the company requires to expand TV and Film offerings.

The new line of credit was announced on Monday by co-CEO’s Gary Barber and Roger Birnbaum who said in a joint statement:

“A year ago MGM was in bankruptcy and to receive this oversubscribed facility just one year later is proof positive that through careful and efficient business decisions, we have earned the faith of the financial community.”

Money from investors will include films that have been formed under the company’s partnership with Sony Pictures Entertainment including 21 Jump Street, The Hobbit: An Unexpected Journey and The Hobbit: There and Back Again.

The studio is also in the process of remaking Robocop, Carrie, Teen Wolf and Poltergeist.

Restructuring for MGM began in May 2009 when the company hired investment bank Moelis & Co. and then replaced CEO Harry Sloan with Stephen Cooper in August 2009. Cooper is a well known turnaround expert.

By entering into bankruptcy MGM was able to stave off annual interest payments of $300 million annually with Moelis receiving $9 million for its efforts.

The company’s new loan is led by JPMorgan Chase which offered upwards of $75 million for the new credit facility. The rest of the money came from various investors including Deutsche Bank, Bank of America Merrill Lynch, Royal Bank of Canada, SunTrust Bank, Wells Fargo and others.

Speaking about the loan Vice Chariman of JPMorgan Chase John Miller revealed:

“The success of this financing further validates investor confidence in the management team and their ability to execute on its business strategy. Market demand was significantly greater than the $500MM issuance, which is a clear indication that the bank market continues to strengthen for the entertainment sector.”

I am personally uninspired by the fact that much of that revolving credit will go into remaking movies, it’s the lack of imagination that has led to less than stellar returns for many of MGM’s movies over the last several decades, now they are turning new cash into rehashed ideas.

Do you think MGM’s slate of soon to be released movies will help turn the company’s fortunes around?

MGM Secures $500 Million Loan Facility For Expansion Purposes is a post from: The Inquisitr

MGM wants to blow up a casino in Las Vegas and while that practice in and of itself isn’t all that strange for a city that reinvents itself on a nearly daily basis, the fact that the resort hasn’t even been built yet has raised some eyebrows.

Vegas’ largest casino operator submitted paperwork on Monday with the county office that would allow them to implode Harmon Tower, once considered the crown jewel of the new $9 billion CityCenter which also includes Vegas hot spot Aria.

The Harmon Tower project has been derailed on several occasions due to various construction problems and an engineering report which says the tower couldn’t withstand an earthquake.

According to MGM, blowing up the tower will be the quickest and safest way for them to resolve issues, while contractors say they can fix the issue which has locked the company in a legal battle with workers on the project.

In an editorial piece the  Las Vegas Review-Journal notes:

“Perhaps the implosion of the Harmon could be promoted as an offering to end the curse of this recession.”

In any case with a lawsuit currently underway and city council approval needed, it could be a while before MGM begins to implode anything from the site.

Does anyone else find this type of destruction to be a bit extravagant at a time when our economy is sputtering along with no fix in sight? On the other hand, I do enjoy watching very large structures blow up and MGM does that better than most organizations.

MGM Wants To Blow Up Vegas Hotel That Hasn’t Even Been Built Yet is a post from: The Inquisitr

Full length movies and television shows from MGM are coming to YouTube.

In an agreement due to be announced Monday, YouTube will start showing free ad supported episodes of American Gladiators, full-length films including Bulletproof Monk and The Magnificent Seven, and clips from popular movies like Legally Blonde.

The New York Times notes that the content being provided isn’t compelling, but it’s an important step for YouTube at a time Hulu is quickly becoming the main destination for major studio content in the United States.

YouTube has previously signed deals with Lionsgate and CBS, with the latter posting full length episodes of Star Trek and Beverly Hills 90210.

Under the deal, MGM will also work with YouTube in keeping copyright infringing materials from MGM’s catalog online but supported by advertising.

MGM TV and Movie content coming to YouTube is a post from: The Inquisitr