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Hobbit Movie Moving Forward

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Hobbit Movie Moving Forward

Another hurdle to Guillermo del Toro's The Hobbit has fallen: MGM, one of the studios producing the movies, has reportedly come up with enough cash to move forward with the production, which was in jeopardy as late as last week.

According to The Hollywood Reporter:

A recent proposal by MGM's new CEO Steve Cooper to defer interest payments on its debt load for the next three months on Thursday won a crucial endorsement from J.P. Morgan.

The investment firm leads a lenders steering committee that has been agitating for a dramatic restructuring of the Lion's operations and its ownership structure. In exchange for an agreement to limited interest forbearance, J.P. Morgan secured a few changes in existing debt terms.

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 movie is eyeing a 2011 release date.
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