MGM officially files for bankruptcy, plans to keep Stargate

[heisenberg]

Metro Goldwyn Mayer, the historic film studio that owns and produces the Stargate franchise, announced today that it has officially filed for bankruptcy in New York. This comes on the heels of last week’s vote by creditors, who “overwhelmingly approved” MGM’s plan to turn over ownership to its debt holders and emerge from bankruptcy with new management.
The studio’s fate is now in the hands of the court, and MGM said it believes the plan will be approved in approximately 30 days.
The pre-packaged bankruptcy will let MGM out of its more than $4 billion in debt, with those debt holders instead owning around 95 percent of the reorganized company. The other 5 percent will go to Spyglass Entertainment and its related subsidiaries, with Spyglass chiefs Gary Barber and Roger Birnbaum serving as MGM’s new co-Chief Executive Officers.
The studio also said that it has enough cash on hand to continue normal business operations during the bankruptcy period, including paying its employees and vendors.
Most significantly for Stargate fans, MGM said that it plans to retain all of its assets during the procedures — and to raise around $500 million in new capital after emerging from Chapter 11, to fund operations “including production of a new slate of films and television series.”
Stargate fans have been waiting in particular for a pair of DVD movies in the franchise, both of which are scripted and awaiting a green light. The end of MGM’s crippling debt and a new influx of capital will be a big step forward — though not the only factor in when SG-1‘s Stargate: Revolution and Atlantis‘s Stargate: Extinction will be made. The studio also needs to be convinced that the films will actually turn a profit — whether in the DVD market or other means it could use to get them to fans.

http://www.gateworld.net/news/2010/11/mgm-officially-files-for-bankruptcy-plans-to-keep-stargate/

 

[Mr. A]

http://www.gateworld.net/news/2010/11/mgm-officially-files-for-bankruptcy-plans-to-keep-stargate/

http://www.mgm.com/

Metro Goldwyn Mayer, the historic film studio that owns and produces the Stargate franchise, announced today that it has officially filed for bankruptcy in New York. This comes on the heels of last week’s vote by creditors, who “overwhelmingly approved” MGM’s plan to turn over ownership to its debt holders and emerge from bankruptcy with new management.
The studio’s fate is now in the hands of the court, and MGM said it believes the plan will be approved in approximately 30 days.
The pre-packaged bankruptcy will let MGM out of its more than $4 billion in debt, with those debt holders instead owning around 95 percent of the reorganized company. The other 5 percent will go to Spyglass Entertainment and its related subsidiaries, with Spyglass chiefs Gary Barber and Roger Birnbaum serving as MGM’s new co-Chief Executive Officers.
The studio also said that it has enough cash on hand to continue normal business operations during the bankruptcy period, including paying its employees and vendors.
Most significantly for Stargate fans, MGM said that it plans to retain all of its assets during the procedures — and to raise around $500 million in new capital after emerging from Chapter 11, to fund operations “including production of a new slate of films and television series.”
Stargate fans have been waiting in particular for a pair of DVD movies in the franchise, both of which are scripted and awaiting a green light. The end of MGM’s crippling debt and a new influx of capital will be a big step forward — though not the only factor in when SG-1‘s Stargate: Revolution and Atlantis‘s Stargate: Extinction will be made. The studio also needs to be convinced that the films will actually turn a profit — whether in the DVD market or other means it could use to get them to fans.

This is bullshit. Of course the SG-1 and SGA movies would turn in a huge profit and they know it! :roll:

 

[Overmind One]

Hmmm...Im not sure this is good news.

http://www.gateworld.net/news/2010/11/mgm-officially-files-for-bankruptcy-plans-to-keep-stargate/

I dont like it. I dont WANT any movies from the current writers. In dont want them to get a chance to ruin the characters, and the only way I would want any movies for SG-1 or SGA is from new writers. Besides, didnt Mallozzi say that SGU would get priority because the sets are up and the actors are still under contract? Good luck with that, Joe!

 

[podbaydoors]

More News for Stargate

I was quite amused by this article from the WSJ (hat tip to EdenSG on GW)- the authors seem mystified why MGM is making such a big deal out of Stargate. I can only assume they're not scifi fans!

MacGyver Ensnared in MGM Bankruptcy

I also liked that SGU was apparently not mentioned, or at least the WSJ doesn't say so. I hope this bodes well for more Stargate, and that it's not just MGM trying to make their assets look valuable so the judge agrees with their plan....

 

[Illiterati]

This can't be making RDA particularly happy. 1.2m isn't pocket change, especially in this economy.

As for the Stargate movie comments with the first referenced article, that sounds like wishful thinking on someone's part.

Carrot, anyone?

 

[podbaydoors]

This can't be making RDA particularly happy. 1.2m isn't pocket change, especially in this economy.

As for the Stargate movie comments with the first referenced article, that sounds like wishful thinking on someone's part.

Carrot, anyone?

Yeah, anyone MGM owes money to is out of luck, even if he is one of their own actors. I'd bet that RDA's accountant wrote that one off a long time ago, though. As for the movie comment in the first article, I agree that's pure conjecture on Darren's part. Certainly, MGM keeping Stargate will make the movies possible, but won't ensure it. Necessary but not sufficient.

 

[Overmind One]

???

This can't be making RDA particularly happy. 1.2m isn't pocket change, especially in this economy.

As for the Stargate movie comments with the first referenced article, that sounds like wishful thinking on someone's part.

Carrot, anyone?

RDA...1.2 million...did I miss something? Why is he owed money?

 

[podbaydoors]

RDA...1.2 million...did I miss something? Why is he owed money?

From the Macgyver days. Sounds like royalty money to me.

Edit: Actually, the article isn't clear. It could be more recent, which would not be good at all. If MGM can't pay its Stargate actors they're REALLY up a creek.

 

[ChromeToasterX]

RDA...1.2 million...did I miss something? Why is he owed money?

Royalties?

 

[Illiterati]

Royalties?

He was one of the executive producers of SG1.

Tis HIS baby.

 

[Overmind One]

Thats right

He was one of the executive producers of SG1.

Tis HIS baby.

I forgot about that...you are right. But then doesnt he get royalties from it and also the movies? SAG will pay him even if MGM does not. Could anyone find more details on this?

 

[SexyDexy]

I forgot about that...you are right. But then doesnt he get royalties from it and also the movies? SAG will pay him even if MGM does not. Could anyone find more details on this?

I thought SAG only funneled the money - like, they are a go-between? They receive the checks from the studios and then pass them on to the actors. I didn't think SAG actually paid the royalties and residuals if the studio didn't, but I could be wrong of course.

All I can find about the RDA 1.2 mil is that it is a "contract claim" which is a very vague term which could be anything - it just means that based on a contract, he is owed money. If it is from MacGyver, then I'm guessing it is residuals from reruns. Unless it has something to do with the supposed new MacGyver movie, but I didn't even think he was necessarily going to be involved in that movie. Anyways, if the debt was absorbed in the bankruptcy then he could be screwed out of that money. That sucks.

 

[Illiterati]

I thought SAG only funneled the money - like, they are a go-between? They receive the checks from the studios and then pass them on to the actors. I didn't think SAG actually paid the royalties and residuals if the studio didn't, but I could be wrong of course.

All I can find about the RDA 1.2 mil is that it is a "contract claim" which is a very vague term which could be anything - it just means that based on a contract, he is owed money. If it is from MacGyver, then I'm guessing it is residuals from reruns. Unless it has something to do with the supposed new MacGyver movie, but I didn't even think he was necessarily going to be involved in that movie. Anyways, if the debt was absorbed in the bankruptcy then he could be screwed out of that money. That sucks.

Knowing that RDA is a savvy businessman, I would assume that he'd have his fingers in anything in which he was involved.

He started producing his own stuff, I believe, when he did the short lived show "Legend" (which I liked very much) and which co-starred his friend and favorite Q, John DeLancie, as Emil Bartok.

 

[Overmind One]

I made a call...you are right.

I thought SAG only funneled the money - like, they are a go-between? They receive the checks from the studios and then pass them on to the actors. I didn't think SAG actually paid the royalties and residuals if the studio didn't, but I could be wrong of course.

All I can find about the RDA 1.2 mil is that it is a "contract claim" which is a very vague term which could be anything - it just means that based on a contract, he is owed money. If it is from MacGyver, then I'm guessing it is residuals from reruns. Unless it has something to do with the supposed new MacGyver movie, but I didn't even think he was necessarily going to be involved in that movie. Anyways, if the debt was absorbed in the bankruptcy then he could be screwed out of that money. That sucks.

You are right about that. SAG wont pay the royalty money, but they WILL file a lawsuit on behalf of its members to secure royalty payments. And MGM's bankruptcy wont affect royalties earned after the bankruptcy (which are generated where SG-1 airs anywhere in the world). He could get screwed regarding monies owed BEFORE the bankruptcy, however.

 

[Illiterati]

Likely this money was owed BEFORE they filed...thus why he would be listed as a creditor.

If he's LUCKY, he'll get pennies on the dollar for what he's owed. But I would also hope that he can secure a larger stake in the Stargate "franchise" as a result.

 

[podbaydoors]

Likely this money was owed BEFORE they filed...thus why he would be listed as a creditor.

If he's LUCKY, he'll get pennies on the dollar for what he's owed. But I would also hope that he can secure a larger stake in the Stargate "franchise" as a result.

Some creative control again would be nice.