The Superman Returns producer has been working on his explosive memoir for months after signing a deal with publishing giant HarperCollins.
The project suffered a setback last May (09) after an early transcript of the book leaked, prompting a string of legal threats from stars mentioned in the tome.
In one chapter of Studio Head, Peters alleges superstar Barbra Streisand enjoyed numerous torrid affairs with her movie co-stars, including Robert Redford, Ryan O'Neal and Kris Kristofferson.
Peters subsequently returned the $700,000 (£437,500) advance he received from HarperCollins bosses and vowed to publish to book himself.
But now ghostwriter Bill Stadiem has walked away from the controversial project after Peters reportedly failed to pay him..
In an upcoming issue of Vanity Fair magazine, Stadiem writes, "It seemed to me (Peters) wanted a companion as much as he wanted a book."