Deadline Hollywood [1] has an extensive report on MGM's current financial woes. Their lenders are furious apparently and are on the verge of letting the company go into bankruptcy. If this happens, MGM would get the restructuring that it needs, but will most likely lose the rights to its top franchise such as THE HOBBIT and James Bond. The company says it needs $20 million in short-term cash to fund its overhead and $150 million to stay afloat in 2009 while getting productions like THE HOBBIT into production. The bondholders are ready to let the company file for Chapter 11, because they know they'll be the first to get paid. This outcome would be disastrous for the future of the company and its creditors.
Links:
[1] http://www.deadline.com/hollywood/exclusive-details-mgm-makes-phone-plea-to-bondholders-for-millions-to-stay-alive-both-hobbit-and-james-bond-in-peril-bondholders-tell-studio-to-go-bankrupt-mgm-calls-that-worst-possible-outcom/