Thanks to many of you for pointing us to this story at The Hollywood Reporter: MGM has secured support from key lenders to allow the studio enough cash to proceed with its participation in “The Hobbit.” A recent proposal by MGM’s new CEO Steve Cooper to defer interest payments on its debt load for the next three months on Thursday won a crucial endorsement from J.P. Morgan.
Concern over MGM’s hold on “Hobbit” is at the heart of the activity. In a 50-50 rights partnership with Warner Bros.’ New Line unit, two “Hobbit” pics are being developed. The first “Hobbit” aims for theatrical release in 2011, with Guillermo del Toro on board to direct that and a sequel. Peter Jackson, Fran Walsh, Philippa Boyens and del Toro are writing scripts for both and are expected to deliver the first screenplay by the end of November. Read More