Ain’t It Cool News is reporting that the next instalment in the James Bond franchise has been completely scrapped because of financial troubles with MGM, the studios behind the Bond movies.

Bond 23 had been put on hold indefinitely in April due to a shortage of funding. Now sources close to the studio are claiming that development on the film has ground to a complete halt.

Sam Mendes was reportedly on board to direct the sequel, which would have starred Daniel Craig in the title role, with a script from Peter Morgan (Frost/Nixon).

Not only have the recent difficulties with MGM affected production on Bond, but the delays that are currently plaguing The Hobbit are being traced back to the studio. This could affect the casting on The Lord of the Rings prequel, as Ian McKellen has admitted he may be unable to commit to playing Gandalf due to scheduling conflicts.

MGM is currently seeking a new buyer to help with the restructuring of its debts, reported to be $4 billion.