Hedge Fund’s “Terminator” Buy Upheld

Feb 11 2010 | 8:09am ET

Hedge fund Pacificor’s purchase of “The Terminator” action-movie franchise is official.

A federal bankruptcy judge approved its sale to the Santa Barbara, Calif.-based firm, which helped finance former owner Halcyon Holdings’ acquisition of its rights two years ago. At a Monday auction, Pacificor entered the winning bid—a credit bid against the millions it claimed Halcyon still owed it.

U.S. Bankruptcy Judge Ernest Robles in Los Angeles rejected an objection leveled by the two losing bidders for the “Terminator” rights, Sony Pictures’ Columbia Pictures and Lions Gate Entertainment. The two Hollywood studios, which entered a joint $35.6 million bid, cried foul at last-minute changes that allowed Pacificor to make a credit bid of up to $38 million.

In the end, it didn’t even take that much. Pacificor’s bid was $29.5 million. But the hedge fund’s offer of future payments to Halcyon—$5 million per sequel—trumped that offered by Sony and Lions Gate, which would have paid the bankrupt company $2 million per sequel after the next one.

Robles ruled that Pacificor’s bid was a better deal for Halcyon’s unsecured creditors.

Pacificor is now in talks with several studios about a production and distribution deal for future “Terminator” films. It had reportedly been in talks to flip the franchise to Sony and Lions Gate, but it is unclear if those discussions are still ongoing.


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.