Movie News

MGM Keeps Its Precious Hobbit

October 2, 2009

Before we get into "The Hobbit" films, here is the official statement by MGM released today after worries a week ago that the studio could be facing bankruptcy:

MGM is pleased to announce that the Company has entered into a forbearance agreement with its lender group. The Company is appreciative of its lenders' ongoing support. Under the terms of the agreement, MGM's lender group has agreed not to enforce its rights or remedies arising as a result of the Company's request to not currently pay interest due on September 30, October 31, and November 30, 2009.

This agreement, which expires December 15, 2009, provides MGM with additional liquidity as discussions continue regarding the development of an optimal capital structure in support of the Company's long-term business plan. With the agreement in place, MGM has taken an important first step in ensuring that the Company has enhanced financial stability and adequate liquidity to implement its business strategies.

The Hollywood Reporter adds that this gives MGM enough cash to proceed with its participation in The Hobbit and its sequel:

Concern over MGM's hold on "Hobbit" is at the heart of the activity. In a 50-50 rights partnership with Warner Bros.' New Line unit, two "Hobbit" pics are being developed.

The first "Hobbit" aims for theatrical release in 2011, with Guillermo del Toro on board to direct that and a sequel. Peter Jackson, Fran Walsh, Philippa Boyens and del Toro are writing scripts for both and are expected to deliver the first screenplay by the end of November.

Warners will lead production and distribute at least domestically. For now, the Burbank studio also is covering any immediate expenses.

The article, which you can read in full here, adds that the studio has enough cash flow to stay in business for at least another year. The article does say, however, that management and the lenders realize the studio's various rights on major properties such as "Hobbit," "The Pink Panther" and the lucrative James Bond franchise are key to MGM maintaining a decent market value.

From ComingSoon.net

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COMMENTS (18)

Posted by:

somethin

October 2, 2009

lol. pink panther a lucrative franchise.?

maybe back when petter sellers was alive

Posted by:

The One Coz

October 2, 2009

Great, as long as the Hobbit movies get made. They shold be as epic as the Lord of the Rings movies, possibly even better, if that is possible with Del Toro on board. Cannot wait for those movies!

Posted by:

The One Coz

October 2, 2009

@Jennifers Body 2

Got worse as they went? What are you smokin?, cause I want some.
Just in case you didn't know, the 3rd movie which apparently you think is the worst of the 3, 'Return of the King', not only won the best picture Oscar at the Academy Awards it also tied the record for the most Academy Awards ever with 11 the same number as 'Titanic' and 'Ben Hur'. So do you still think it is the worst of the 3? If you do you are in the vast minority of both critics and non-critic movie-goers. If you still feel the trilogy was not good and you can't enjoy them then I honestly feel bad for you.

Del Toro did great work with the Hellboy movies and 'Pans Labyrinth', he will bring that talent to The Hobbit movies. With Peter Jackson involved and most of the whole crew from New Zealand that worked on the Lord of the Rings working on The Hobbit movies, they should be amazing!

Posted by:

Flooberjooch

October 2, 2009

@Coz

I agree that JennifersBody2 is talking nonsense here, but -- personally -- I would never use the Oscars as a measuring stick for how good or bad a movie is. Have you taken a look at some of those Best Pic winners over the last couple of decades (hell, over the entire history of the awards, pretty much)? The real horror is when you compare the winners to some of the vastly superior movies that they beat out for the award.

Don't get me wrong: there are some great films on the best pic list (including ROTK), but not nearly to any level of consistency.

The Oscars are a joke, and I think it's safe to say that referencing them as a sort of seal of quality is naive, and hurts a person's credibility amongst discerning film fans.

Just saying. I AM looking forward to the Hobbit, even if I don't think it's gonna be lightning in a bottle like LOTR was.

Posted by:

Colbert

October 2, 2009

@Flooberjooch

Good point. Oscars do not a great movie (or actor) make. 'Chicago', Halle Berry, Roberto Benigni, and Marisa Tomei (who can act, but was totally undeserving of the Oscar for My Cousin Vinny); all great examples of "What were the voters thinking??". Regardless, The Hobbit looks to be in very capable hands, so I'm excited that it's still pushing forward.

Posted by:

Luckey

October 2, 2009

The Oscars are rigged "Slumdog Millianiars" sucked big balls & it walked away with the top noch? BULLMESS

Anyways I LOVED all 3 LOTR movies & I will love the two new Hobbit movies will they win best pic ?? No but they will be fun to watch on the big screen & on HD TV

Posted by:

Really?

October 2, 2009

The LOTR were some amazing, epic movies. Hellboy 2 was maybe the best example of pure style over substance in any movie I've seen. Pan's Labyrinth, while a watchable film, suffered from a similar problem. The Hobbit is, also, an inferior story to LOTR by most people's (besides children's) standards. So, all in all, it is VERY unlikely the Hobbit will be anywhere near as good as any of the LOTR trilogy. That said, since Jackson is still heavily involved in the creative process, and Del Toro is beholden to Jackon's previous vision (fingers crossed), The Hobbit probably won't have any ridiculous, unreasonable creatures with eyes in silly places just for effect, and the movies will be good. Hopefully.

Posted by:

IOP

October 2, 2009

Finaly, it's getting off the ground!
Woo-hoo, go Hobbit!

Posted by:

mojojackson

October 3, 2009

Really?:

The Hobbit is not an "inferior" story to LOTR and it's not a question of whether the Hobbit movie will be "as good" as the LOTR movies. They're not made to be compared to each other. The two stories are apples and oranges.

Also, Del Toro is, oddly, not beholden to Jackson's vision. They've said that, though as many recurring characters will be played by the actors who played them in LOTR, the Hobbit films will be Del Toro's vision of the story, not Jackson's.

Posted by:

joe asylo

October 3, 2009

well they got little i think they pull through.