MGM Somewhat Saved, “Hobbit” Continues

Beleaguered studio MGM released an official statement today saying “the Company has entered into a forbearance agreement with its lender group” says The Hollywood Reporter.

The agreement essentially delays interest payments due for the next few months, leaving the studio with enough capital to continue developing projects well into next year.

That most notably includes its participation in “The Hobbit” film projects. Warners will still lead production on the two films, will distribute domestically and cover any immediate expenses.