/ 11.25.2009 11:00AM
MGM Issues NDAs to Potential Suitors
LOS ANGELES: Heavyweight movie studio Metro-Goldwyn-Mayer has sent out around 20 nondisclosure agreements to potential buyers, Reuters reports. Time Warner Inc. and News Corp. are said to be among the interested parties. Lions Gate and Sony were also on the list.

The studio has a reported $3.7 billion in debt from a 2005 buyout. It also has a $250 million loan payment due in April, 2010.

MGM is said to be considering an auction, though creditors would like to get some feedback on just how much potential buyers would be willing to pay. MGM is owned by private equity firms TPG and Providence Equity Partners, and Sony and Comcast. The group of four bought the studio out for $2.85 billion and the assumption of $2 billion in debt.


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