For various reasons, this film is not going anywhere anytime soon.
For those who are late to the party, Henson had a Partnership with a certain movie studio that only exists to crank out Oscar bait. Essentially anything that isn't Oscar bait gets a nice, cynical screw you (see the butchered Hoodwinked Too, and the Law Suit brought against the company for sitting its butt on Escape from Earth). They were sitting their butts on the Fraggle Rock film, wanting it to be "edgier" (read, cynical and full of toilet jokes for the dumb kids and lame, stale pop culture jokes for their even dumber parents)... which all turned out to be a rouse. Said film company didn't want to spend any money making it anyway, and were trying to find a third partner so they didn't have to do anything.
Then another company bought the rights to the film and ..... nothingness.