Metro-Goldwyn-Mayer, the Hollywood studio behind the film classics The Wizard of Oz and Ben-Hur, has insisted that it is not for sale despite hiring Goldman Sachs to carry out a strategic review after concern over its $3.7 billion (£2 billion) of debt.

The studio, home to the lucrative James Bond franchise, said that it was not for sale but was exploring “enhancements” to its long-term capital structure. It is understood that this could include an initial public offering, a debt refinancing or a foray into the bond market.

Talk of the appointment of Goldman Sachs has prompted speculation that MGM's private equity owners were contemplating a sell-off. The studio is owned by a consortium that includes TPG, Providence Equity Partners, Sony Corp and Comcast.

“We are gearing up to compete more with other Hollywood studios and have acknowledged that a rebuilding process is going to elevate the studio to compete with our rivals,” Jeff Pryor, executive vice-president, corporate communications, said. MGM, the seventh-biggest Hollywood studio, asserts that it can be in the top three in five years.

Last year United Artists secured $500 million in financing through Merrill Lynch to fund 15 to 18 movies over five years. MGM's $3.7 billion of debt must be repaid in 2012. That debt will begin to amortise in 2011, which means that the amount owed will start to increase. Last year the studio made $558 million from its 4,000-title film library; however, aside from Bond, it has not had a recent big hit. Lions for Lambs, the first film from its United Artists subsidiary, run by Tom Cruise and Paula Wagner, the outgoing chief executive, was a box-office flop last year.

However, Mr Pryor said that the studio, which has been focusing mainly on film distribution, had several big projects in the pipeline which it expected to be successful. These include a collaboration with New Line Cinema on The Hobbit - a Lord of the Rings prequel - and a remake of Robocop.

MGM has also enlisted the help of Mary Parent, a former executive with Universal Pictures, to run MGM's global film business, bolstering plans to produce a larger slate of films.

Speculation about the possible sale of MGM has intensified as the group announced the departure of Ms Wagner from the chief executive role at its United Artists studio this month.

MGM said: “Contrary to recent media reports, MGM is not for sale. There is no asking price' for the company. MGM's existing financing arrangements are sufficient to meet its needs.”

The credit crunch has reduced financing for Hollywood films from investors who had poured billions into projects in recent years. Separately, the Screen Actors Guild strike has meant that studios have been unable to put films into production.

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