MGM to Continue With ‘The Hobbit’
It’s no secret that MGM is facing financial difficulties. As the studio that holds rights on The Hobbit, many fans have been wondering what these financial problems mean for the planned Lord of the Rings prequel(s).
Now fans can rest easy, at least for the moment. MGM has announced that they have entered into a forbearance agreement with their lenders that will defer MGM’s obligation to pay some of the interest due on its loans.
MGM now has much needed liquidity to continue operating, giving it breathing space to implement new business strategies designed to help improve its financial viability.
To cut a long story short (you can read the long version at THR), the upshot is MGM can proceed with funding production on The Hobbit 1 and The Hobbit 2.
The current plan remains to release The Hobbit 1 in December 2011 and The Hobbit 2 in December 2012.
