MGM Snags 'Hobbit' Cash
Participation in the Project Continues
Published: 10/01/2009 11:32pm
Debt-ridden studio MGM has managed to get enough support from lenders to continue its participation in the production of The Hobbit, which Guillermo del Toro is currently developing in
According to The Hollywood Reporter MGM’s debt holders are planning to convert debt to equity over the coming months and then auction off the studio’s assets. Along with its control of the James Bond, and The Pink Panther properties, MGM’s rights stake in The Hobbit, which is “broadly seen as a big moneymaker,” is one of the studio’s top assets, and is the reason the lenders agreed to the forbearance for fear of damaging the studio’s market value.