Reports were circling Hollywood last night that Relativity Media has thrown its hat into the ring and offered to set up a $500m production fund for MGM.

It is understood the goal would not be for Ryan Kavanaugh’s LA-based company, backed by Elliott Associates, to run the studio in any way.

Kavanaugh’s production team would be interested in developing, among other projects, further instalments of MGM’s coveted James Bond and Hobbit properties, most likely resulting in some degree of ownership of the finished product.

The development comes after MGM unveiled a plan to go it alone after the beleaguered studio’s creditors deemed bids from Time-Warner and Russian businessman Len Blavatnik to be too low. The creditors are valuing MGM at $2bn.

A spokesperson for MGM declined to comment and spokespeople for Relativity did not return messages at time of writing.