Hollywood's iconic movie studio Metro-Goldwyn-Mayer (MGM) has received interest for a possible takeover from more than 10 suitors, including Anil Ambani-led Reliance-Anil Dhirubhai Ambani Group (R-ADAG), says a media report.
The Wall Street Journal has reported that MGM received interest from over 10 firms and some made actual bids while others expressed interest but have not submitted offers.
"MGM's current list of suitors includes Time Warner Inc; Lions Gate Entertainment; Summit Entertainment; Liberty Media Corp; News Corp, owner of The Wall Street Journal; and India's R-ADAG," the daily said quoting people with knowledge of the situation.
According to the report, others signalling interest included private-investment firms Elliott Management and Access Industries, which is the investment arm of Russian-born industrialist Len Blavatnik.
The publication noted that offers for the movie studio, in the first round of bids, are not close to covering the $3.7 billion debt.
MGM, which has a 4,000-title movie library, is owned by a group that includes private-equity firms Providence Equity Partners and TPG Inc and media companies Sony Corp and Comcast Corp.
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The publication said under almost any sale scenario, MGM would need approval from all its lenders. The movie studio's lending group, led by JP Morgan Chase & Co, includes some 140 investors, many of them hedge funds.
According to the daily, MGM has tapped the restructuring practice at law firm Skadden, Arps, Slate, Meagher & Flom to prepare a possible prepackaged bankruptcy that would solicit approval from creditors ahead of a bankruptcy filing in hopes of limiting the movie studio's stay in court.
Quoting a person familiar with the situation, the report said, "Getting 140 people to say yes to anything is not easy."
Further, the person said any bankruptcy filing would be a "quick in and out process" but cautioned that MGM was "far away from deciding (bankruptcy is) the way it has to go".