Editor Mike Fleming with Deadline New York has a follow up to recent news regarding negotiations with Peter Jackson to direct The Hobbit.  While he comments it is “probably the best news for debt-laden MGM in years” it has stepped up the pressure on MGM’s studio backers.  He writes:

Now the MGM creditors also must decide either to commit MGM’s half of the production costs  for the two films or take available outside funding, all before the studio works out its future ownership strategy. If the creditors don’t seize on the momentum, MGM risks losing its chance to release the first film in December 2012. (The second film would follow a year later.) And there is a good chance that Jackson will change his mind, meaning that inaction costs the studio an enormous opportunity.

He adds that process steps to keep existing rights deals in place probably won’t happen until late July at the earliest, a timeframe viewed as too long to wait for decisions on The Hobbit.  Read the entire article here.