East of the Sun and West of the Moon was a planned film adaptation of the Norwegian fairy tale of the same name. It was to be directed by Don Bluth and planned as his studio's second animated feature.
The youngest daughter of a peasant is forced to live with a polar bear who is really a prince cursed by his wicked stepmother. Upon discovering who he truly is, she sets off with him to find his stepmother's castle east of the sun and west of the moon in order to break the curse.
Why It Was Cancelled
The studio suffered from financial losses following the moderate performance of The Secret of NIMH, their first animated feature. There was also the loss of financial backing following then planned distributor Paramount Pictures backing out following the studio's renaming from Don Bluth Productions to Sullivan Bluth Studios. As a result, the film was scrapped when it was heavily into production.
As of right now, the film is permanently cancelled.