"January 11, 2007 - Following yesterday's strong statement by New Line honcho Bob Shaye, who said that Peter Jackson would never make The Hobbit under his watch, the LOTR director has issued a statement to fans through Wingnut Films via the Ain't It Cool News website.
"Our issue with New Line Cinema has only ever been about their refusal to account for financial anomalies that surfaced from a partial audit of The Fellowship of the Ring," the statement reads. "Contrary to recent comments made by Bob Shaye, we attempted to discuss the issues raised by the Fellowship audit with New Line for over a year but the studio was and continues to be completely uncooperative. This has compelled us to file a lawsuit to pursue our contractual rights under the law. Nobody likes taking legal action, but the studio left us with no alternative."
It is regrettable that Bob has chosen to make it personal," Jackson goes on to say. "I have always had the highest respect and affection for Bob and other senior management at New Line and continue to do so."
All this drama comes after Jackson announced in November that New Line would not let him direct The Hobbit given the on-going legal dispute between the two parties. New Line is co-producing The Hobbit with MGM, with the latter studio owning the distribution rights to the project. New Line only has a limited period of time in which to make the film, at which point MGM and producer Saul Zaentz can make their own moves. Zaentz has gone on record saying that he wants Jackson to direct.
What will happen with The Hobbit? Jackson's only shot at making it seems to be if New Line lets the project slip by, an unlikely scenario. We'll keep you posted on further developments. --IGN.com"