India’s Sahara group says MGM studio creditors reject offer of $2 billion for outstanding debtBy AP
Friday, September 24, 2010
Sahara says MGM studio creditors reject $2B bid
LOS ANGELES — Indian conglomerate Sahara India Pariwar says that its offer to buy out the creditors of struggling Hollywood studio Metro-Goldwyn-Mayer Inc. for more than $2 billion has been rejected.
Subrata Roy Sahara, the company’s chairman, had a conference call with creditors on Tuesday. The company said late Thursday that the offer was rejected within hours.
A spokesman for Houlihan Lokey, an investment bank that is advising MGM’s creditors, declined to comment.
MGM’s creditors are owed around $4 billion. They are negotiating a restructuring plan for the studio that could include a prepackaged bankruptcy.
MGM has rights to the James Bond franchise and owns half of the upcoming movies based on J.R.R. Tolkien’s “The Hobbit.”
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