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Time Warner Bids For MGM

Time Warner has submitted an all-cash $1.5 billion offer for Metro-Goldwyn-Mayer Inc., joining two other known bidders, independent studio Lions Gate Entertainment and industrialist Len Blavatnik's Access Industries. MGM said is will evaluate the bids over the next several weeks, while working with its lenders to extend the current forebearance period for paying interest on its $3.7 billion bank debt, which ends March 31.

Additionally, MGM is hoping to strike a forebearance aggrement for its separate $250 million revolving credit facility with JP Morgan Chase, which is due in full on April 8. Another option: MGM could wind up not accepting any of the bids and opt instead for a prepackaged bankruptcy or Chapter 11 protection.

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