NEW YORK (
received better-than-expected first-round bids of between $1.5 billion and $2.5 billion, but short of covering the $3.7 billion the studio owes lenders, a report says.
MGM also has begun to explore how it could stage a streamlined "prepackaged" bankruptcy as part of the auction, the
Wall Street Journal
reports, citing people with knowledge of the situation.
MGM's current list of potential buyers includes
Lions Gate Entertainment
, and India's
, the newspaper reports.
MGM studio is owned by a group including private-equity firms Providence Equity Partners and TPG, and
, which acquired the studio in a $5 billion deal that closed in 2005.
MGM, which owns a movie library with about 4,000 titles, has begun evaluating the bids and could start providing more information to serious contenders in the near future, people familiar with the matter said, the
-- Written by Joseph Woelfel in New York.
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