Saturday, September 26, 2009

MGM Trouble Threatens The Hobbit?

According to Deadline Hollywood, the rumor mill is suggesting that MGM is on the verge of bankruptcy. The rumors indicate the storied studio needs $20 million for operating costs and another $150 million to fund various projects including The Hobbit which the studio is a partner with Warner Bros.

The studio is apparently already in debt for around $3.7 billion but only worth $1.5 billion if sold today. The net result is if the studio folds, then most of its projects including Hobbit, James Bond, Stargate and more will become mired in bankruptcy proceedings and other issues while taking care of its debt. This may lead to selling of those franchises and other delays that may affect funding and thus production of the Hobbit films.

For now this is all speculation and even if confirmed the legal wrangling required to get through the knot of debt could take many months to work out so may be a while before determine what impact, if any, this news might have on The Hobbit films.

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