Hedge Fund Wins ‘Terminator’ Auction

Feb 9 2010 | 11:43am ET

After a five-hour-long auction last night, the rights to the “Terminator” action movie franchise were sold to the hedge fund that financed its last sale more than two years ago.

Halcyon Holdings, which has owned the rights since 2007, accepted a $29.5 million bid from Pacificor, the Santa Barbara, Calif.-based hedge fund which Halcyon last year accused of trying to force it into bankruptcy. The deal still must be cleared by a bankruptcy court judge.

It is unclear how Pacificor won the auction; the hedge fund, which claims Halcyon owes it more than $32 million, was planning a creditors bid, in effect swapping the debt for the asset. But Halcyon countered that it owed only $4 million.

A Deadline Hollywood source reports that Pacificor “was willing to pay almost any amount of money for ‘Terminator,’” if it is, in fact, paying any money at all. The deal reportedly leaves Halcyon with no debt to Pacificor; the company will also receive $5 million for each “Terminator” movie made, and gets to keep the revenues from the last two “Terminator” films.

The hedge fund beat out a pair of top Hollywood studios for the rights. Lionsgate Entertainment opened the bidding at $15 million, and later teamed up with Sony Pictures on a joint bid. According to Deadline Hollywood, Peter Schlessel, president of worldwide affairs at Sony, “stormed out” of the downtown Los Angeles auction after losing to Pacificor.

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