MGM has had it's share of bad press recently as it struggles with cash-flow problems to its debtor before it releases a slew of new movies in 2010. Happily, a ray of sunshine hit the Century City based studio on Thursday as their lenders allowed the Lion to defer its payments for three months.  What does all this financial speak mean to moviegoers (besides credit envy)?  Well, it guarantees MGM gets to fund half of Guillermo Del Toro's highly anticipated "The Hobbit" which will being production next year. 

MGM has teamed up with Warner Bros. who is taking over "LOTR" duties from its New Line division and will produce and release the two "Hobbit" movies in the states.  The first part of "The Hobbit" is expected as soon as 2011. MGM may still distribute internationally (which would be through 20th Century Fox which is even more confusing).  In any event, it allows del Toro and producer Peter Jackson not to worry about who they are reporting too (as if they are even looking at studio notes) and provide some confirmed stability to the project.  Up next for MGM?  Clearing up financing for the next James Bond flick they "should" take over from a still smarting Sony Pictures.