MGM Hangs Onto The Hobbit

MGM’s precarious financial situation has foreshadowed some fear for its productions, such as The Hobbit. Fortunately, the studio has been able to secure finances to keep its projects afloat.

MGM president Steve Cooper requested a delay for interest payments on the studio’s debts, and his wish was granted. Furthermore, MGM can now move forward with The Hobbit, which should now be able to go through with production for at least one year.

Needless to say, MGM’s profitable franchises, such as The Hobbit, Pink Panther and James Bond, provide the company with considerable market value.

For The Hobbit, two films are in the works in partnership with New Line Cinema. The first, directed by Guillermo del Toro, will open in December 2011. Del Toro is currently writing the script with Peter Jackson, Fran Walsh and Philippa Boyens, and the deadline for the first screenplay is set for the end of November.

The studio will resume its payments on December 15 for its debt of over 50 million dollars, according to The Hollywood Reporter.