MUMBAI: About 150 lenders of MGM had given a 31 January deadline on a big interest payment relating to $3.7 billion in studio debt. But MGM avers that the lenders had extended the deadline to 31 March to accommodate a continued solicitation of offers to buy the studio.

"The lenders took this action in support of the company‘s efforts to strengthen its financial position and to facilitate the company‘s ongoing process of exploring strategic alternatives which include continuing to operate as a standalone entity and evaluating a potential sale of the company," the studio said adding, "MGM appreciates the continued support of its lender group."

The studio said it had begun a second phase of the solicitation process. The first round brought roughly 10 non-binding offers to buy the studio but all below $2 billion.

It is said that about half the first-round bidders will be invited for the second round of due diligence. "This phase of the process is expected to run for the next several weeks," MGM said.

Warner Bros., Lionsgate, Liberty Media, AT&T, Summit Entertainment, Reliance Big Entertainment, and Elliott Management, a stakeholder in Relativity Media have put in their bids while Fox is still reviewing financial data while mulling a possible offer.

MGM‘s current ownership group includes Providence Equity, TPG Capital, Sony, Comcast, DLJ Merchant and Quadrangle.