It’s a bit of an understatement to suggest things aren’t exactly looking good for MGM. The 85-year-old company looks like being on its last legs, with many predicting it will soon cease to be.

In September it was reported that the movie studio owed $4 billion in debts, and bosses have had to ask for a short-term bailout. However, an agreement to cease interest payments is due to run out at the end of November, and MGM then faces either bankruptcy or having its assets auctioned off.

Variety is reporting that the latter option may be the one chosen and that this garage sale could begin in a few weeks time.

A major studio such as Time Warner could buy the library of 4,000 titles, while the famous logo could also be bought up by another company keen to incorporate it into its own logo. United Artists could also be sold off in a separate deal to an interested party.

This kind of auction would need the approval of two-thirds of the company bondholders, but they may instead opt for a pre-packaged bankruptcy deal. Either way, the options look decidedly bleak for this one time behemoth of Hollywood.

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