After months of rumors and speculation, legendary MGM Studios is officially on the chopping block. The studio has a large amount of debt looming over it, and isn’t making enough revenue to pay it off. According to Deadline Hollywood Daily, they’ve put out a statement regarding their plans for the company’s future, which will include possible new ownership.

MGM has made an agreement with their lenders that will allow them to go into forbearance until January 31st, while they find other means of funding. This will be the second extension they’ve been given within the past few months.

November 13, 2009 — MGM said today its lenders have agreed to extend the forbearance until January 31, 2010.  The lenders took this action in support of the Company’s ongoing efforts to develop and evaluate long-term strategic alternatives to maximize value for its stakeholders.  MGM appreciates the continued support of its lender group for the process it is undertaking.  MGM also said today it is beginning a process to explore various strategic alternatives including operating as a standalone entity, forming strategic partnerships and evaluating a potential sale of the Company.

Who’s going to buy MGM? The only release the studio put out this year was the remake of Fame, which didn’t exactly storm the box office. They’ve still got the developing Hobbit movie, and the rights to the James Bond franchise, which is one of their prized assets. It’s so sad to see a studio of their caliber be put in this position. Remember the good old days?

What should happen to MGM? Who should buy it?