Indian firm may buy Bond studio's debts

AN Indian conglomerate could buy the debt of the troubled Hollywood studio behind the James Bond franchise.
By The Newsroom
Published 19th Sep 2010, 23:25 BST

Sahara India Pariwar confirmed yesterday that it was in discussions about buying the debt of Metro-Goldwyn-Mayer for $1.5bn to $2bn.

"On mutual interest discussions are on but it's too early to comment on the issue," said Abhijit Sarkar, corporate communications chief of Sahara India Pariwar, which owns businesses in media, entertainment, real estate and insurance.

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Earlier this month, MGM said that it won extra breathing room to make its debt payments, with its lenders agreeing not to seek remedies for nonpayment of debt until October 29.

MGM has a film library that includes the James Bond and Pink Panther franchises, but it has been struggling to create new hits.

It is also coping with plunging DVD sales as consumers move to viewing online.

The studio is saddled with $4bn debt from a buyout in 2005 by a group that included private equity firms Providence Equity Partners, TPG, Quadrangle Group and DLJ Merchant Banking Partners, and media companies Sony Corp and Comcast Corp.

Related topics:Hollywood