While the financial situation over at MGM is still holding the film back, Warner Bros., which owns half of the rights to the franchise is, "making progress untangling the MGM situation, so we should have certainty with The Hobbit sometime soon."
Peter Jackson also said that a decision on whether or not he would direct The Hobbit and The Hobbit Sequel had not been made. He did say that, once a decision is made, he would be able to firm up a five-year plan for several projects, "that will keep many people very busy."
Despite all of the delays, it seems casting is still happening for The Hobbit. Towards the end of the article, it was stated that one of Peter Jackson's other projects that he will produce is Beneath Hill 60, which will be set in Australia during World War I and will be directed by Jeremy Sims. It was said that Jeremy Sims is also an actor who auditioned for a role as a troll in The Hobbit.
We'll be sure to keep you posted with any further updates on The Hobbit as soon as more information is revealed.