We just received a phone call from our source inside of Dreamworks. You know that big fire in Hollywood? The blaze burned out of control the last couple days and has caused a lot of damage in the Hollywood hills. Apparently one of the few buildings that was destroyed was an editing facility. One of the more high profile films being cut at the building was Michael Bay’s Transformers. I regret to inform you that most, if not all of the non Effects footage has been destroyed.

This devastating blow sent title-waves around the Dreamworks offices earlier today. But fear not, everything has been worked out. The film will now be released one year later, on July 4th 2008. Michael Bay has decided to recreate the lost footage using CG. He has hired Pixar’s newly announced live action effects division to recreate the missing reels, using the same motion capture technology used on Polar Express.

Bay is actually looking at the disaster as a gift. He has hired William Goldman (The Princess Bride) and William Monahan (The Departed) to rework the missing scenes with some new darker ideas. “The Two Wills” as Bay refers to them, will focus on adding some of the transforming animal creatures from the late 1990’s Beat Wars animated series into the film. The new characters will include Rattrap, Cheetor and Tarantulas. Jack Nicholson is being eyed to voice Rhinox, although no contract is in place.

We contacted star Shia LaBeouf to ask him what he thought about the changes, this is what he said:

“Dude, I’m not Indiana Jones son. They haven’t contacted me. Because it’s a rumor. I know as much as you do. I’ve never had the conversation with him. I’ve never had the contract. And I told you this when I saw you last. Since then Cate Blanchett was announced, Ray Winstone was announced. I’ve been rumored before them and I’m still not announced.”

He then hung up the phone in a fit of anger.