MGM owes creditors about $4 billion, mostly to hedge funds that purchases the studio's bank obligations at a discount. The creditors are preparing to take over the studio in a streamlined bankruptcy. They plan to turn management over to Gary Barber and Roger Birnbaum, co-heads of Spyglass Entertainment.
MGM declined to comment to The Wall Street Journal. A Sahara spokesperson said: "On mutual interest discussions are on but it's too early to comment on the issue."