Nov. 14 (Bloomberg) -- Metro-Goldwyn-Mayer Inc., owner of the “James Bond” movie franchise, is considering options including a possible sale as it works through a debt crunch.

Lenders to the studio have extended their forbearance until Jan. 31, Los Angeles-based MGM said yesterday in an e-mailed statement. Susan Arons, an outside spokeswoman for MGM, declined to comment beyond the statement.

The studio’s 4,100-title library and movie franchise rights represent an attractive asset. Lions Gate Entertainment Corp., the largest independent film studio, has expressed interest in buying MGM. Time Warner Inc. may also have an interest, Lions Gate Vice Chairman Michael Burns said at a conference this week.

“It’s all about price,” Burns said at the Dow Jones & Co. and Nielsen Co. conference in New York. “I think we’ll know sooner rather than later.”

The studio is developing another “Bond” installment, set for release in 2011, and is co-producing “The Hobbit” based on the J.R.R. Tolkien book with Time Warner.

Closely held MGM is controlled by Providence Equity Partners Inc. and TPG. Comcast Corp. and Sony Corp. each own 20 percent of MGM, while DLJ Merchant Partners holds a 7 percent stake and Quadrangle Group holds 3 percent.

Keith Cocozza, a spokesman for New York-based Time Warner, didn’t return a call seeking comment. Julie Henderson, a spokeswoman for News Corp., whose Los Angeles-based Fox studio distributes MGM DVDs in the U.S., declined to comment.

Restructuring Help

MGM hired investment bank Moelis & Co. in May to help restructure more than $3.7 billion in debt. Lenders agreed to a forbearance that allows the film company to skip payments through Dec. 15.

The company replaced Chief Executive Officer Harry Sloan in August, creating an office of the CEO with film head Mary Parent, Chief Financial Officer Bedi Singh and turnaround specialist Stephen Cooper.

Lions Gate, based in Vancouver and run from Santa Monica, California, closed unchanged at $5.25 yesterday in New York Stock Exchange composite trading. Time Warner gained 41 cents to $31.95, and News Corp. added 28 cents to $12.61 on the Nasdaq Stock Market.

To contact the reporter on this story: Michael White in Los Angeles at mwhite8@bloomberg.net

Last Updated: November 14, 2009 00:01 EST