Back in September we told you about MGM’s financial woes and their possible bankruptcy. Now, we have word from Variety that MGM, which boasts one of the best known logos in the entertainment business and a library of some 4,000 films, could be placed on the auction block within the next few weeks due to its massive $3.7 billion debt.

The various equity owners of MGM, including several private equity firms, have already written down their $5 billion acquisition, which closed in 2004. Any sort of auction would need approval of a two-thirds majority of the bondholders, and a couple of the bondholders insist they have not been contacted as yet. Some sources believe a pre-packaged bankruptcy is an option, and there is still an expectation that Time-Warner might make a last eleventh hour bid.