U.S. studio MGM sale may be delayed - WSJ

March 25 (Reuters) - Metro-Goldwyn-Mayer, saddled with debt of about $3.7 billion, could face a potential delay in the auction to sell itself after its debt holders signaled an unwillingness to settle for a low price, the Wall Street Journal said.

MGM's creditors, who are hoping the sale price would be around $2 billion, are unhappy with the bids that the studio has received so far, the Journal said, citing people familiar with the matter.

On Monday, sources told Reuters that Time Warner Inc (TWX.N) seen as top bidder with about $1.5 billion [ID:nN22198219].

Creditors could be willing to take control of MGM in an attempt to inject more competition into the bidding process and get a higher price for the company, the paper said.

Meanwhile, the studio has asked its lenders to extend the forbearance period on its bank debt, sources told Reuters Loan Pricing Corp late on Wednesday.

The renowned studio's library includes the James Bond and Pink Panther franchises and has been trying to cope with plunging DVD sales caused by consumers moving online.

MGM was not immediately available for comment outside regular U.S. business hours. (Reporting by Anuradha Ramanathan in Bangalore; Editing by Lincoln Feast) ((anuradha.ramanathan@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800: Reuters Messaging: anuradha.ramanathan.reuters.com@reuters.net))