Goldman Sachs and Deutsche Bank have pulled out of a commitment to underwrite a $1bn MGM slate deal in the wake of a credit crunch in global markets, according to The Financial Times.
The planned deal aims to attract private equity, hedge fund and institutional investors to back MGM productions and co-productions.
But the recent credit slump in global markets has led the financiers to reconsider the deal, says the report, though they have not abandoned the deal.
'The banks are believed to have moved from an underwriting commitment to a 'best efforts' commitment to complete the financing,' says the report.
No one was available to comment on the stories today but the problems are expected to be more of a temporary setback than a serious long-term threat.
The planned deal aims to attract private equity, hedge fund and institutional investors to back MGM productions and co-productions.
But the recent credit slump in global markets has led the financiers to reconsider the deal, says the report, though they have not abandoned the deal.
'The banks are believed to have moved from an underwriting commitment to a 'best efforts' commitment to complete the financing,' says the report.
No one was available to comment on the stories today but the problems are expected to be more of a temporary setback than a serious long-term threat.
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