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TheCountOfNowhere

Mgm Bust?

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http://www.bloomberg.com/news/2010-11-03/metro-goldwyn-mayer-files-bankruptcy-after-rejecting-lions-gate-takeover.html

"Metro-Goldwyn-Mayer Inc., distributor of the James Bond and Rocky movies, filed for bankruptcy in Manhattan federal court after rejecting a takeover bid by Lions Gate Entertainment Corp. and billionaire Carl Icahn. "

"MGM said its plan may be confirmed by the court within 30 days. After the bankruptcy, it aims to raise $500 million for operations, including for new movies and television series, it said. "

So not really bankrupt then...just not keep on paying off debts ?

It seems to me there should be severe punishment for failing to pay debts.

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http://www.bloomberg.com/news/2010-11-03/metro-goldwyn-mayer-files-bankruptcy-after-rejecting-lions-gate-takeover.html

"Metro-Goldwyn-Mayer Inc., distributor of the James Bond and Rocky movies, filed for bankruptcy in Manhattan federal court after rejecting a takeover bid by Lions Gate Entertainment Corp. and billionaire Carl Icahn. "

"MGM said its plan may be confirmed by the court within 30 days. After the bankruptcy, it aims to raise $500 million for operations, including for new movies and television series, it said. "

So not really bankrupt then...just not keep on paying off debts ?

It seems to me there should be severe punishment for failing to pay debts.

Usually there is severe punishment. You need to put up a lot of equity to be able to borrow against assets you already have. If you fail to repay, the bank takes a bite out of your equity, and you can lose it all.

Mind you, some bankers dont bother about demanding much equity. In which case, they take the bath if the company fails to repay, which is how it should be.

The whole system goes wrong when you get bailouts of banks who have been foolish and lent too much against too little equity. Which is what happens when you get friends of bankers making political decisions.

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Usually there is severe punishment. You need to put up a lot of equity to be able to borrow against assets you already have. If you fail to repay, the bank takes a bite out of your equity, and you can lose it all.

Mind you, some bankers dont bother about demanding much equity. In which case, they take the bath if the company fails to repay, which is how it should be.

The whole system goes wrong when you get bailouts of banks who have been foolish and lent too much against too little equity. Which is what happens when you get friends of bankers making political decisions.

Welcome to our world :lol:

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  • 145 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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