Pacificor Seeks To Sell ‘Terminator’ Rights To Auction Losers

Feb 10 2010 | 12:33pm ET

Newly-minter “Terminator” owner Pacificor wants to get out of the movie business before it ever really gets started.

The Santa Barbara, Calif.-based hedge fund, which won a testy Monday auction for the rights to the action movie franchise, is now in talks with the two studios it beat out. Sony Pictures and Lions Gate Entertainment are negotiating the joint purchase of “The Terminator” rights, the Los Angeles Times reports.

In a heated, five-hour bidding battle on Monday night, Pacificor emerged with the rights. But Lions Gate and Sony—whose president of worldwide affairs, Peter Schlessel, reportedly stormed out of the Los Angeles auction after losing—were prepared to challenge Pacificor’s winning bid in court.

Pacificor didn’t actually put up any more for the “Terminator” rights, instead offering a so-called creditors bid which would wipe out current owner Halcyon Holdings’ debt to the hedge fund. Pacificor alleges that Halcyon owes it more than $30 million, although Halcyon puts the figure closer to $4 million.

Under the terms of Pacificor’s offer, Halcyon’s debt to the hedge fund would be satisfied, and Halcyon would be entitled to $5 million per “Terminator” movie made from here on.

A bankruptcy court hearing is set for today to approve the auction. If no deal is struck by then, Sony and Lions Gate are likely to object to the sale.

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