<p>Peter Jackson has responded to (New Line Cinema Chief) <a href="/articles/20058,1.html">Bob Shaye's comments</a> about the absolute status of the end of their current relationship and future relationship. Here's what he told the trade magazine <em>Variety</em>:
</p><blockquote>"It is regrettable that Bob has chosen to make [the argument] personal. I have always had the highest respect and affection for Bob and other senior management at New Line and continue to do so."
"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 legal action, but the studio left us with no alternative."
He also took issue with Shaye's intimation that Lord of the Rings cast members won't take part in New Line's 40th anniversary because of the lawsuit saying, "In light of these circumstances, I didn't think it was appropriate for me to be involved in [an anniversary video]. I have never discussed this video with any of the cast of the LOTR. The issues that Bob Shaye has with the cast pre-date this lawsuit by many years.".
So, the drama continues.... It seems to me that the only way <em>The Hobbit</em> will get made now, is for New Line to lose the rights to filming by not exercising them this year (in starting production on the film).