Cruise's United Artists To Retain $500 Million Film-financing Deal
TOM CRUISE's United Artists (UA) studio will retain its $500 million (GBP270.3million) film-financing fund despite a Wall Street meltdown reportedly putting the deal in jeapordy.
Financial services firm Merrill Lynch offered UA the sum at the end of last year (07), but studio bosses feared the current volatile financial situation in the U.S. would force the company to pull out of the funding deal since they were acquired by Bank of America earlier this week (15Sep08).
According to the New York Post, bosses at Merrill Lynch were looking for ways to revise the GBP500 million deal after Cruise's partner, Paula Wagner, left her role as CEO of the studio this summer (08).
UA's parent company Metro-Goldwyn-Mayer set out to raise film financing amid Wagner's move, reportedly even considering selling the studio in August (08).
A spokesperson for MGM says, "The UA film financing agreement was closed last year. The terms are set and will not change. All of the funds are available to UA."
But insiders tell the New York Post UA may have to wait for their cash.
A source tells the newspaper, "Reworking a $500 million (GBP270.3million) credit line for UA is going to be way down (Bank of America's) list of things to do. It could take six months to a year before they even get around to looking at it."