It’s been a tense couple of weeks for MGM, as it found itself on the red side of a budget, and had to ask its lenders to extend it a bit more credit so it could continue to produce two of its key properties. That funding was secured (at least for the next three months), which will allow the company to proceed with the production of J.R.R. Tolkien’s The Hobbit.
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.
By shifting the debt for a couple of months, it will secure MGM’s 50% hold on The Hobbit property, which will make potential buyers of the company more interested in a potential money making title.
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