MGM bid opens today; Reliance Entertainment may enter race

Anil Dhirubhai Ambani-controlled Reliance Entertainment is among the front runners  along with Lions Gate, Warner Bros' parent Time Warner, Liberty Media, and Twentieth Century Fox owner News Corp, who are likely to put in a bid for the legendry Hollywood studio Metro-Goldwyn-Mayer Inc. (MGM).

Non-binding bids for the Hollywood major are due today.

According to reports, after today's bids, MGM's financial adviser Moelis & Co. will recommend whether to have a second round of bidding or let MGM attempt to restructure its debt on its own.

If the bids are low or creditors don't agree to forgo some debt, the studio may go for a bankruptcy filing.

The winner will have to settle it out with a consortium of 140 creditors led by JP Morgan Chase, who expect to collect about $4 billion that they have lent to buy the studio.

In November, MGM said that it is exploring a potential sale of the company as it struggles to deal with looming debt payments and attempts to come up with a long-term business plan (See: Hollywood's MGM puts itself up for sale).