26 Sep 2009

MGM close to bankruptcy - The Hobbit movie delayed?

Sorry, not very good news today. Reports out last night are not very promising, the adaptation of The Hobbit for the big screen could be delayed indefinitely after reports are surfacing that MGM is very close to declare bankruptcy. Having successfully settled the lawsuit that was threatening the whole project, here is even a bigger challenge.Deadline Hollywood Daily is reporting that MGM studio producing the J.R.R. Tolkien's adaptation of The Hobbit , is on the verge of bankruptcy.

Last Wednesday MGM held a very long meeting with stakeholders in a desperate plea for money because the studio is going to be out of funds very soon . "MGM said it needed $20M in short-term cash flow to cover overhead, and an additional $150 million to get through the end of year and continue funding its projects, and to start The Hobbit," read DHD's report on the matter. The stakeholders want the studio to file for bankruptcy now, to get their money back however, MGM insisted that filing for bankruptcy it would be the worst possible outcome for the creditors and the company as the decision is likely to put an indefinite delay on "The Hobbit"

This is a terrible blow for all Tolkien's fans, 'The Hobbit' has just got a go ahead from J.R.R. Tolkien's estates and publisher Harper Collins after they resolved legal battle with New Line Cinema. Having reached a legal settlement outside the court in early September, Christopher Tolkien, the son of J.R.R., said in a statement, "The Trustees acknowledge that New Line may now proceed with its proposed films of 'The Hobbit.' Shooting was expected to start in March 2010. The first movie was scheduled for December 2011, while the second one was expected to hit theatres a year later.

I am a very sad hobbit today.