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: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

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

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

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.