Breaking news — Bond 23 with Craig officially canceled

[Kristatos]

"Ever more complex mythology"? "Dangling plotlines"? What the bloody hell are they talking about?

[Omega]

Any chance when Craig says he wants Bond to get going quickly he is being literal? Meaning if it doesn't get going soon he is going to take other work.

[Mazer Rackham]

For Whom the Bell Tolls

(Hollywood Reporter) - Things are going so badly with MGM's restructuring review that a forced bankruptcy is a real possibility by September 15.

Then again, lenders don't want to lose control of the studio's lucrative James Bond movie rights. So one of them could still dig deeper to provide enough new equity capital to make a voluntary restructuring feasible. Or if that option fails, the Century City studio could obtain a seventh extension of its debt forbearance agreement with its 100-plus lenders.

In any case, little more than a month before $400 million-plus in owed debt and interest payments come due, this much is certain: Frustration has never been higher with the more than yearlong effort to heal the ailing Lion.

"It's kind of become a joke," said an executive at one of the companies considering a strategic partnership with MGM. "There is a real fatigue among the lenders after all of the forbearance agreements."

The studio has secured six forbearance agreements, or delays of the deadline for paying principal and interest on its senior bank debt. Strapped by almost $4 billion in total corporate debt, MGM repeatedly has gotten lenders to postpone recoupment of a $250 million revolving credit facility and $200 million or so in related interest payments.

Certainly, the array of possibilities have grown no more appetizing since the Lion fired MGM CEO Harry Sloan a year ago after the failure of a lengthy search for studio financing. Its more-concerted search for restructuring options kicked in the following November, when it formally retained the Moelis & Co. consultancy.

A forced bankruptcy reorganization -- like any prepackaged deal -- would shift MGM ownership from a current consortium to studio debtholders. But it also likely would spell the end of MGM's role as a film producer or distributor.

Several major film projects already have been stalled by the studio's financial ill-health, including the next James Bond picture and two films based on J.R.R. Tolkien's book "The Hobbit." Other projects treading water include a planned "Three Stooges" movie and a "Robocop" remake.

Should the studio be forced into bankruptcy court, it still could keep the lights on by shifting money tagged for debt interest payments to administrative purposes. But overhead, including executive salaries in the moribund film-production division, likely would be pared dramatically.

As for the fear of losing control of 007 rights, there is no legal consensus on whether lenders would lose those rights in the event of a forced bankruptcy. But such concern has been enough to force lenders to agree to the half-dozen debt payment extensions.

J.P. Morgan leads a steering committee representing the broader group of MGM lenders. Those still talking with MGM management and the lenders about different strategic partnerships include executives at indie studios Summit, Spyglass and Lionsgate. But the devil remains in the details. For starters, none of the proposed partners has been able to tap sufficient new capital as part of their respective restructuring proposals.

Before the restructuring talks, MGM had solicited bids for buying the company outright. But a top bid of $1.5 billion by Time Warner was deemed too low.

MGM owners include Providence Equity, TPG Capital, Sony, Comcast, DLJ Merchant and Quadrangle. The studio is being run by an office of the CEO comprised of turnaround specialist Stephen Cooper, CFO Bedi Singh and film chief Mary Parent.

Four hedge funds -- Anchorage, Highland, Davidson Kempner and Solis -- have corralled at least 35% of MGM's publicly traded debt during the past several months. The debt recently was trading at about 44 cents on the dollar.

Approval of a prepackaged bankruptcy would be needed from 51% of all lenders and a group representing two-thirds of the total amount owed. That latter provision gives the biggest debtholders an effective veto over any restructuring proposal.

There have been rumblings that Anchorage or other of the big debtholders would be willing to ante up new capital to complete a restructuring with one or another of MGM's prospective strategic partners. But its inexperience in Hollywood has been cause for concern among those in the broader lenders group.

The strength of Summit's proposal is its offer of international film distribution, which the Lion lacks, while a Spyglass-MGM combo hinges largely on the management prowess of the production company's principals Gary Barber and Roger Birnbaum. Of the two, an arrangement with Spyglass is considered the simpler to value, but placing a specific value on the services of Spyglass execs has proven difficult.

An MGM-Lionsgate combo hinges on the parties first coming together on the companies' respective valuations. Then, Lionsgate investor Carl Icahn likely would have to bless the transaction. Another possible outcome to the long-running drama at MGM: "The big debtholders could just end up saying, 'Now I know why everybody hates this business,'" a financial-community source said. "And they just decide to go back to Time Warner."

[Captain Nash]

Hold onto your hats boys and girls.
Bond 23 may not be on the back burner much longer.

http://latimesblogs.latimes.com/enterta ... f-mgm.html

Watch this space.

[Blowfeld]

by John Young
Categories: Movie Biz, Movies, News

Spyglass Entertainment is nearing a deal to run debt-ridden movie studio MGM, according to The Wall Street Journal. Spyglass, which has co-financed such movies as Dinner for Schmucks, Star Trek, and The Sixth Sense, would receive a 4 percent ownership stake in the restructured studio, and creditors would forgive MGM’s $4 billion debt in exchange for the bulk of the studio’s new equity. A deal could reportedly be finished as soon as this week, ultimately paving the way for MGM to return to making movies, including the James Bond franchise and Peter Jackson’s two Hobbit films.

Most of what Mazer has told us is panning out.

[katied]

Yay?: MGM can continue.


Nay: Bond 23-sooner rather than later.And probably a few more Craig Bond films.

[Mazer Rackham]

Sorry Benny Bond 23 will remain on the back burner, make that be moved to the back burner in the event a deal is inked. Once a deal is done we'll see what the details are, the biggest question at this point is funding; how much? & Where is it going to come from? But where it will be going is no mystery, The Hobbit.

[Blowfeld]

Guess it is no use combining these threads.

Mazer what are the chances this spyglass announcement is MGM's attempt to mitigated the bad news of the past week?

[Mazer Rackham]

I believe it is serious everything I hear backs up a pending deal. From my point of view the recent news is part of this, the investors were sick to death of the delays the various articles laid it out pretty evenly. If WSJ has said LionsGate instead of Spyglass I would doubt it more. The nuclear option is on the table and everyone knows the articles helped to drive the point home, while the investors might allow for more delays the revolving credit about to come due is not in the same pool. They need to do something soon. The deal could fall apart before it is done but a lot of people are trying their damnedest. If nothing happens officially by next week then the doubters may be right. It feels right to me but I've been wrong before.

The Hobbit fanboys are already celebrating, prematurely. The money has to come from somewhere but they're right the Hobbit movies will put on a fact track. The earning history of the franchise plays no small part but also the fact they are ready to go (script and pre-planning are done) as well as getting Jackson back to direct are huge factors.

Bond 23 will be one of their priorities but I suspect several factor will slow it down. Script not being ready and pre-production not being done is a problems MGM has a backlog of films where the footwork has already been done and cost far less to push through. They may make far less too, at this point it may be less germane than getting their regular productions going again.

[Mazer Rackham]

Part 2

Here is what I think will hamper Bond 23:

Code: Select all

Cost -EON needs to back down on the cost $200m (+ promotions) isn't going to cut it any more, I doubt any studio in the world would give them the carte blanche they had with MGM in the past.

Script -They can knock one out real quick, but the problems they're already experiencing is troubling and in keeping with other debacles they had with scripting. To me this indicates a lot of trouble behind the scenes, clashing visions, stuff that should have been sorted out long ago keeps cropping up.

The Hobbit -No doubt it is going to suck the oxygen out of the room, MGM with a smaller leaner operation budget will dedicate significant portion to financing the Hobbits. Bond will be put off for another year. Good news if the Hobbit is a smash the money will come around faster for Bond.  Bond is long term, Hobbit short term but potentially a bigger money so it makes sense to greenlight it first.

New Owners/EON -If the status quo remains I can see Bond 23 getting going much faster than I anticipate. However it is doubtful this will go unchanged. A lot of money in Bond and a lot of money goes into making it. Tighter purse stings dictate the new owners closely examine Bond. There are things as co-owner the studio has a right to demand, EON successfully ignored them in the past. But those were fat years.

This is also where all the dreaded predictions of Bond dying come to play, it won't be over funding or scripting, or even casting, it will be partnership. The collaboration of the two owners that has to be functional for Bond to happen. Nobody will want a deadlock to halt the money train but nobody is going to want to be screwed over either. EON had MGM over a barrel, a new restructured MGM is going to be in a place to reexamine the partnership. EON receives upwards of $30m to produce the movies, + a cut of the profits. MGM got some good studio perks too but not enough to ignore this anymore.
Barbara made some boneheaded maneuvers already, she misread the situation and tried to throw her weight around. She didn't understand there was no room to give in, MGM will never give up their half ownership or their rights in any manner shape or form to Bond. Babs could easily escalate the situation and Bond could end in deadlock, until cooler heads prevail which could take years to work out.

Bad thing about Craig is the studio and all involved now have the impression anyone can be cast as Bond and just about any story thrown up on the screen. They also think they can put Bond on ice and bring him back anytime they want. He isn't seen as perishable as some other series and this will be where the battle ground will lay. A sumo match pushing back and forth. On the other hand the need to make money may over rule everything else on both sides. However EON has at least 4 movies outside of Bond they are supposed to be developing, this is their fall back position but if they want to be take seriously as a production house they need to get moving on those project as well.

[Blowfeld]

Adding this LA TImes story to this thread as part of my attempt to merge threads on essentially the same subject.

Interesting bits highlighted. This expands a little more on what Daniel would like to do, however the writer of this article appears to be unaware Daniel and Michael nixed this trilogy nonsense in 2009. By finish the story I think he means his 'Bonds' story

Daniel Craig wants another shot at Bond: 'It's out of my hands.... If I get the call, I'll be there'
August 13, 2010 | 3:41 am

EXCLUSIVE

Daniel Craig as James Bond 007 tall Daniel Craig is in Western wear these days on the New Mexico set of "Cowboys and Aliens," but he can't help but wonder whether he will ever don James Bond's tuxedo again. "It's out of my hands," the British actor said during a break from shooting. "I'm ready and willing, and if I get the call, I'll be there."

It's not clear when -- or even if -- that call will come. The fiscal crisis at MGM has suspended the cinema spy's license to kill and, as Steven Zeitchik has reported, there may also be some discord among the current creative team about the direction of the next film, which would be the 23rd in the storied franchise.

Craig took on the role of 007 with "Casino Royale" in 2006 and followed it with "Quantum of Solace" in 2008. The two films pulled in $1.1 billion in worldwide box office and, more than that, brought a new grim energy to the Bond character on screen. Craig, who is plainly proud of his work in the iconic role, is eager to tie up the loose ends in the plot with a third film, but he seemed to have more questions than answers about the topic.

"You probably know more than I do," Craig said. "It is what it is. Unless MGM can sort themselves out, we can't make a movie. It's hard to talk about things that aren't happening. There will be more to say when things are happening. I'm really keen to get going, it's as simple as that. And I'm hoping that, in a while, we will."

Venerable but vulnerable MGM is buckling beneath $4 billion in debt, a situation that has already wrought havoc with the plans for a two-film adaptation of "The Hobbit." Director Guillermo del Toro walked away from "Hobbit" in frustration. Will MGM's limbo also lead to key defections or lost opportunities with Bond? One major issue is Craig's tight schedule.

The in-demand actor costars with Harrison Ford, Olivia Wylde and Sam Rockwell in the Jon Favreau-directed "Cowboys and Aliens," and everyone involved is approaching it as a two-film affair. Craig's calendar will be tied up promoting the summer 2011. There's also "The Adventures of Tintin: The Secret of the Unicorn," the December 2011 release from Steven Spielberg that stars Craig and opens a planned trilogy.

Later this year, Craig begins filming "The Girl With the Dragon Tattoo," David Fincher's take on the Swedish-language film and the bookshelf bestseller; yes, that film that has sequel written all over it, if it finds the audience that's expected. Some of these franchises may fizzle -- Craig starred, for instance, in "The Golden Compass" but the plan to make that a film series went south.

Craig turned 42 in March, but his world-weary version of Bond may benefit from a few more wrinkles. The question is whether an especially long delay might prompt the franchise decision-makers to go for a youth movement and a new story cycle, much as Sony is doing with a total restart of its "Spider-Man" franchise.

Craig, though, clearly wants to finish what he's started, no matter what the challenges.

"I felt as if we were just getting going and that we'd get the chance to make a couple more," the actor said. "I'd like to fulfill the circle with the story. But, yes, there is nothing really to say until whoever gets that house [at MGM] in order. There's no chance of getting it made until those things are taken care of."

-- Geoff Boucher

[Blowfeld]

Got to love the Star staying on top of the situation

15th August 2010
By Neil Chandler

James Bond’s “licence to kill” is at risk with the spy’s next adventure by no means certain. A new outing for Daniel Craig has been put back after news that movie ­executives can’t agree on the script. It is a blow to fans of sizzling Bond girls like Quantum Of Solace stars Olga Kurylenko, 30, and Gemma Arterton, 24.

And the news means 007 has more obstructions to get past to make his next cinema appearance than he would trying to break into a villain’s undersea lair. That adds to the financial woes of maker MGM, which is billions of dollars in debt and cannot make any more films until a buyer is found.

Studio bosses are currently trying to lash together a deal with Spyglass Entertainment, the firm behind The Sixth Sense.In the meantime Bond bosses Barbara Broccoli and Michael Wilson are not even allowed to move the series elsewhere.Now it has emerged the script is not finished either. A screenplay by Bond veterans Neal Purvis and Robert Wade has been reworked twice, latterly by director Sam Mendes.Insiders believe they are grappling to bring together all the storylines from Casino Royale and Quantum Of Solace in the third of the new-look Bonds. Craig, 42, has meanwhile agreed to star in the US film version of best-selling book The Girl With The Dragon Tattoo later this year and will then promote current flick Cowboys And Aliens.

[carl stromberg]

Craig says "I'd like to fulfill the circle with the story." (in the post above). What "story". His "young Bond" story is over, especially now there will be a 4 + year gap.

[katied]

Craig says "I'd like to fulfill the circle with the story." (in the post above). What "story". His "young Bond" story is over, especially now there will be a 4 + year gap.

Anyone who thinks Bond will still look "young" in 4 years is insane.