Posts Tagged ‘board of governors’

Metro Goldwyn-Mayer is drowning in debt, but its survival behooves its investors

In order to play catch-up with the latest news that has happened over the past few days, here are some of the more notable headlines aside from Despicable Me‘s opening weekend box-office numbers (which reportedly exceeded $60 million).

Metro Goldwyn-Mayer Requests 6th Debt Extention

The longstanding Hollywood studios is reportedly almost $4 billion in debt. More than 100 lenders who will assume control of the company soon (due to this debt) are in the process of phasing in new management, but in the meantime the company still owes the lenders a $250 million payment with a $200 million interest tag, which must be paid by July 15th. However, MGM will have more time to come up with these funds if the lenders grant the company a sixth extension, which they have until July 13th to do.

Disney to Finally Sell Miramax?

Disney has made an agreement (but not an official deal) with a group headed by construction executive Ronald Tutor and joined by Colony Capital that will sell the latter Miramax studios, along with its 611 film library, for $650 million. Only $300 million is available in equity to Disney at the moment with more to be raised in the near future, and so a $200 million debt is to be expected for Tudor and Colony Capitol if the deal goes through. Disney appears to have confidence that the buyers will be able to raise the money.

The Weinstein Co. still claims to have interest in buying Miramax, but their 2005 exit agreement happened because they felt Disney’s asking price of $650 million was too high. If the Tudor/Capitol talks fall through, Weinstein will reportedly consider making another bid. If the current deal does become official, it will raise questions about the rights to certain films that Weinstein still owns due to their exit agreement. Miramax will not be able to make sequels or remakes for any films Weinstein owns without their approval.

Academy Changes Rules for Animated Films

The Academy of Motion Picture Arts and Sciences’ board of governors has released new rules about which animated films can be nominated for the Best Animated Feature category. The original cutoff for animated shorts was a 40 minute maximum, and animated features had to be at least 70 minutes. The gap has been corrected to include animated films over 40 mins in the feature-length category.

Also, the board has decreed that motion-capture animation does not qualify as true animation, which is the traditional “frame-by-frame technique”. So, mo-cap animated films will not be eligible for Best Animated Short or Feature Oscar categories. The new rule regarding animated films is as follows: “An animated feature film is defined as a motion picture with a running time of greater than 40 minutes, in which movement and characters’ performances are created using a frame-by-frame technique. Motion capture by itself is not an animation technique. In addition, a significant number of the major characters must be animated, and animation must figure in no less than 75% of the picture’s running time.”