* MGM to open its books to potential buyers - source

* Film production to continue, management to stay in place

* Extends forbearance to Jan. 31 (Recasts with exploring sale, adds details, byline)

By Sue Zeidler

LOS ANGELES, Nov 13 (Reuters) - Metro-Goldwyn-Mayer said on Friday it is exploring a potential sale of the company as the storied Hollywood studio struggles to deal with looming debt payments and come up with a long-term business plan.

MGM, whose lenders extended a forbearance until Jan. 31, said its other options include operating as a stand-alone entity or forming strategic partnerships.

A source familiar with the matter said the company was expected to open its books to interested parties in the next few days, the start of a process that could take months.

Companies mentioned in media reports as potential buyers include Lions Gate Entertainment Corp (LGF.N: Quote, Profile, Research), Time Warner Inc (TWX.N: Quote, Profile, Research), and Viacom Inc (VIAb.N: Quote, Profile, Research).

Investment bank Moelis & Co, hired by MGM in May to help refinance its debt, will be overseeing the potential sale process, the source said.