In a move that may reassure skeptics, MGM has announced it’s in “full compliance” with all requirements on its substantial debt. The studio made the announcement Wednesday, asserted that a certification of compliance was included as part of delivery of its March 31, 2009 financial statements delivered to its lender group. MGM also said those statements included an unqualified audit opinion about the studio’s financial health.

The announcement was issued three months after the studio hired investment bank Moelis & Co. to help restructure its debt (Daily Variety, May 15).

MGM insiders have been insisting in the wake of the hiring of Moelis that the studio’s been attempting to be proactive by renegotiating with lenders the $3.7 billion in debt that comes due in 2012. It’s believed that the restructuring effort is aimed at extending the due date on its debt or orchestrating a debt-for-equity swap.

MGM was acquired in 2005 in a $5 billion debt and equity deal by Sony, Comcast, Providence Equity Partners and TPG Capital.

Read the Rest of the Story Here – MGM puts skeptics at ease – Entertainment News, Film News, Media – Variety

You might also like:

• Tyler Perry will push Lions Gate to record revenues, but not profits

• Midway Goes to Warner Bros. for $33m

• Sinclair Broadcast Group on Verge of Bankruptcy