MGM’s financial debt is estimated at $4 billion and approaching bankruptcy. Lionsgate and Summit International have been showing interest in acquiring MGM, but Spyglass Entertainment is ahead with negotiations to merge with the failing company.

The proposal would earn Spyglass Entertainment 4% ownership in MGM, which is reportedly valued at $1.9 billion. A downside would be that the amount owed to creditors would be due — which of course the creditors want this outcome to happen. Who can blame them after MGM’s recent decision?

[Hollywood Reporter]