New suitor for MGM?

Just when it appeared as if the movie studio was finally resolving its financial mess a big Indian company has become interested in acquiring the place, reports the WSJ. Talks are said to be exploratory and the MGM stakeholders haven't yet shown much interest, but the company, Sahara India Pariwar, is talking about a $2-billion bid. All this comes as creditors prepare to take over MGM in a pre-packaged bankruptcy and then turn management over to the co-heads of Spyglass Entertainment.

MGM owes creditors about $4 billion and recently won a seventh reprieve on debt payments until Oct. 29. The studio's debt is largely held by hedge funds that purchased pieces of the studio's bank obligations at around 60 cents on the dollar, implying a valuation of around $2.4 billion. Sahara would likely have to top that number to garner substantial interest from creditors, who have a big say in how MGM is restructured.