Deadline extension was the name of the game in Hollywood yesterday [March 31] as two unrelated ownership sagas involving storied Hollywood brands dragged on.
Disney announced that it was putting back the deadline for bids on its defunct specialty label Miramax from April 1 to April 5 in a possible ploy to draw out more suitors or raise existing valuations from the two interested parties.
Disney is said to be holding out for $700m, however The Weinstein Company and Tom Gores’ Platinum Equity are understood to have substantially lower valuations in mind.
In a separate development earlier on Wednesday involving another storied entertainment brand, MGM announced that its creditors had agreed to give the embattled studio more time to resolve its ownership issues.
A statement from the studio said: “MGM said today its lenders agreed to extend the forbearance period and therefore will not seek remedies in connection with the non-payment of interest and principal due on the company’s bank debt, including the revolving credit facility, through May 14, 2010.
“The lenders took this action in support of the company’s ongoing efforts to strengthen its financial position, and MGM appreciates their continued support throughout the process.”