New Line, MGM said to be close to greenlight
"The Hobbit," which has been stuck in limbo this year, has moved closer to a greenlight from co-financers New Line and
MGM.
Though neither studio had any comment, sources close to the situation indicated that an official go-ahead on the
back-to-back films may be coming within a few days. But those sources also emphasized that a greenlight is still not a
certainty.
The studios have been faced with several challenges in finalizing the start of production. MGM has been mired in trying
to sort out its debt-laden balance sheet and move toward a pre-packaged bankruptcy that would leave Spyglass
Entertainment chiefs Gary Barber and Roger Birnbaum in charge of the storied studio.
The studios also need to sort out the dispute with the New Zealand actors union, which has managed to persuade the seven
major actor unions to boycott the production because they allege that local performers are treated unfairly and deserve
a union contract. Peter Jackson, who's expected to direct in addition to writing and exec producing, has threatened move
the production to Europe but a source with knowledge of situation said that dispute may be settled soon.
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