The first round of bids for Metro-Goldwyn-Mayer turned out a shade better than expected, but the offers aren’t close to covering the $3.7 billion that is owed to lenders.

Bids ranged between $1.5 billion and $2.5 billion, according to people with knowledge of the situation, and MGM has begun to explore how it could stage a streamlined “prepackaged” bankruptcy as part of the auction. The studio is struggling after taking on debt to pay for its 2005 leveraged buyout and a sharp slowdown in the market for DVDs with little hope of a rebound.

In all, MGM received interest from more than 10 suitors. Some made actual bids while others expressed interest but haven’t submitted offers. MGM’s current list of suitors includes Time Warner Inc., Lions Gate Entertainment; Summit Entertainment and Liberty Media Corp.

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