Orion OKs New Line Deal
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A proposal by New Line Cinema Corp. and Metromedia Co. to lift Orion Pictures Corp. from bankruptcy court with a cash infusion of $25 million won approval Thursday from Orion’s board.
Orion, operating in a Chapter 11 bankruptcy, also announced that the committee representing unsecured creditors of the company would not oppose the reorganization plan, increasing the likelihood that the New Line deal will go through.
According to the announcement, the proposed rescue plan is “subject to Orion’s ability to negotiate and accept higher and better offers” from other suitors. However, a spokeswoman for Orion said, “There have been no (other) offers on the table.”
If Orion did accept an offer higher than that put forward by New Line and Metromedia, the accord approved Thursday would require Orion to pay those firms damages of $1.5 million, plus expenses not to exceed $500,000.
The proposed reorganization calls for New Line to manage the operations of Orion and to provide all distribution services for the company. New Line would receive about 46% of the reorganized Orion’s stock.
The reorganization plan still must be submitted to and approved by the Bankruptcy Court for the Southern District of New York.
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