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MGM to restructure $3.7 billion debt

Hollywood studio MGM has hired an investment bank to help it restructure and refinance its $3.7 billion debt so that it can continue production of both film and TV projects.

The company has hired Moelis & Co to restructure its debt payments, which are reportedly around $250 million per year. There has been much recent speculation that the company was about to be sold, or that it would sell its recently relaunched movie label United Artists, which was set up by actor Tom Cruise.

“The company is committed to its business plan, which calls for it to remain independent, continue its motion picture production and television activities and leverage the value of its film library,” it noted in a statement.

MGM is currently producing a number of international TV coproductions including a remake of Robert De Niro-fronted action movie Ronin with UK indie Spooks for the BBC and a 4x1hour mini series based on The French Lieutenant’s Woman as well as a raft of feature films including a remake of Fame and comedy horror movie Cabin in the Woods, which is produced by Buffy The Vampire Slayer creator Joss Whedon.