Warner Bros. will handle international theatrical and video distribution of The Hobbit films on behalf of MGM and will fund MGM’s share of the production costs in exchange, the companies announced on Thursday. MGM will continue to handle international TV licensing for the films. 

 

This solves a problem, since MGM is currently in Chapter 11 bankruptcy proceedings (see “MGM’s Pre-Packaged Bankruptcy Approved”). 

 

Production is slated to start in February (see “’The Hobbit’ Starts Shooting in February”), with the two films planned for release in December 2012 and December 2013.