Carolco Pictures announced plans last week to merge its wholly owned Orbis Communications subsid into Carolco Tele-vision Inc., in an effort to consolidate tv operations.
No agreement has been reached as to the terms of the exchange, in which Carolco TV would pay Carolco Pictures in cash or stock. The merger would be subject to the approval of creditors and both Carolco boards.
Robert Goldsmith, senior v.p. and general counsel for Carolco Pictures, said the combined entity would “most likely” be run by the current management of Orbis, headed by prexy and CEO Robert Turner, and will probably retain its name. Both matters are under discussion.
Carolco TV arose from last May’s merger of a Carolco Pictures subsid with DeLaurentiis Entertainment Group, which had been a debtor-in-possession under a Chapter 11 filing.
Carolco Pictures holds approximately 70% of the equity of Carolco Television, with the remaining stock held by the liquidation estate of De Laurentiis Entertainment Group – at least until the distribution of assets to DEG creditors whose claims have been approved by the bankruptcy court.