The Fate of 'The Hobbit' Hanging

The J.R.R. Tolkien's adaptation could potentially be delayed indefinitely after reports are surfacing that MGM is inch away from declaring bankruptcy which could mean losing its rights to 'Bond 23'.

Having successfully dodged a potentially crippling lawsuit earlier, "The Hobbit" is presented with another problem that may hinder it from heading to the big screen anytime soon. Deadline Hollywood Daily (DHD) is reporting that MGM, the studio producing this J.R.R. Tolkien's adaptation, is on the verge of bankruptcy.

On Wednesday, September 23, MGM had held a very long conference call with bondholders in a desperate plea for money because the studio was 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 Peter Jackson's Hobbit," read DHD's report on the matter.

DHD further noted that the bondholders want MGM to declare bankruptcy to get their money back. However, the studio insisted that 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" in addition to the possibility of losing rights to James Bond movies, in particular "Bond 23".

The feature project for "The Hobbit" has just got a go ahead nod from author 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.' "

"The Hobbit" is taken from J.R.R. Tolkien's novel of the same title and is planned to be made into two-part movies. The movies will re-create the scenes of the novel, with additional events that make an impact to "The Lords of the Rings", such as the expulsion of Sauron from Mirkwood by The White Council.

Shooting is expected to start in March 2010 and go on for about 370 days. Ian McKellen, Hugo Weaving and Andy Serkis are said to reprise their "The Lord of the Rings" roles as Gandalf, Lord Elrond and Gollum respectively. The first of the adventure fantasy movie is scheduled for December 2011 U.S. release, while the second one is expected to hit theaters a year later.


source: aceshowbiz.com