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MGM's money problems

New films ”Red Dawn” and ”The Hobbit” are both stalled due to the studio’s financial troubles

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Will somebody please buy MGM so we can get our movies back? First, the cash-strapped company — which is in the hands of its debt holders — caused the next Bond film to be pushed back indefinitely, setting scores of Daniel Craig fans on edge. And now it seems to be complicating matters for the remake of 1984’s Red Dawn, too. Insiders tell EW that the film, starring up-and-comer Chris Hemsworth, will be postponed due to the company’s cash-flow problems. ”There’s just no money to release it,” says one individual close to the company. MGM isn’t commenting, and Red Dawn remains on the fall schedule. But the beleaguered studio may be responsible for a higher-profile holdup: When director Guillermo del Toro left The Hobbit (the two-picture epic being produced by Peter Jackson and cofinanced by New Line Cinema) last month, he placed the blame in part on MGM’s financial troubles. Everyone involved in the project denies that was the case, with one source saying MGM has been paying its portion of the development bills in full. But whether the studio can pay its share of the actual production remains to be seen. With all this murkiness, and without a director, it’s looking increasingly unlikely that The Hobbit will start its long journey in 2010.

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