×

Orion emerges from Chapter 11

Orion Pictures’ star has finally risen from bankruptcy.

Eleven months after it sought protection from its creditors in U.S. Bankruptcy Court here, the embattled Orion has emerged from Chapter 11 as a library sales operation and distributor.

Under terms of its reorganization plan confirmed Oct. 20, Orion may not provide new production financing but will distribute films made with outside cash.

On the same day interim president Leonard White charted the company’s new course, Orion released its first- and second-quarter results for fiscal 1993.

For the second quarter ended Aug. 31, Orion slashed its net losses by 75% to $ 11.43 million (or 51 cents a share) from $ 48.07 million ($ 2.14 a share). Revenues from continued operations, however, tumbled 74% to $ 35.1 million from $ 133.78 million.

For the first quarter ended May 31, net losses fell 57% to $ 10.73 million ( 48 cents) from $ 24.81 million ($ 1.07). Revenue fell 53% to $ 80.8 million from $ 172.1 million.

For the six-month period, net losses were cut nearly 70% to $ 22.2 million ( 99 cents) from $ 72.9 million ($ 3.20). Revenue fell 62% to $ 115.9 million from $ 305.9 million.

The per-share amounts noted above are based on Orion’s common stock outstanding before the reorganization plan went into effect. Holders of old Orion common and preferred shares will receive 0.8% and 0.1% new Orion common shares, respectively.

White said the company is in active discussions with a half-dozen interests about putting up capital to produce new films Orion would distribute.

He said 40 to 50 projects are in various stages of development for which he hopes to find funding. He believes producers will be attracted to the Orion name and reputation and insists the company will be in shape to give their projects full attention.

“We don’t have dozens of projects vying for our attention,” said White. “We can focus on their product and aggressively distribute it in the market.”

Orion will distribute its 10 unreleased films next year, with the first, the Michelle Pfeiffer starrer “Love Field,” to launch in late January.

Aside from its distribution plans, the new Orion will pursue ways to exploit its 750-title library.

White noted the company’s annual overhead will average about $ 14 million–a drastic reduction from the former Orion’s overload of $ 80 million.

Within the next 45 days, White hopes to hire up to 60 fulltime employees to bring the company’s workforce up to 160.

By year’s end, Orion will have shutdown its New York operation and move the surviving operation to the West Coast. All that will remain in Gotham is the international division.

More Biz

  • ICM Partners

    ICM Partners Promotes Victoria Gutierrez, Charlotte Lichtman and Brittany Perlmuter

    ICM Partners has promoted three — Victoria Gutierrez, Charlotte Lichtman and Brittany Perlmuter — to agent. Gutierrez will work in the concerts department, Lichtman will be an agent in the international and independent film department and Perlmuter moves to the talent department focusing on comedy. Gutierrez started her career at ICM Partners in 2014, working [...]

  • The Netflix logo is displayed at

    Netflix Stock Falls After Verizon Announces Disney Plus One-Year Giveaway

    Netflix investors, already skittish about the looming entry of Disney and Apple into the competitive streaming space, pushed the stock down as much as 4% in morning trading Tuesday. The drop came after Verizon announced a deal with Disney to offer Disney Plus for 12 months free to all unlimited wireless customers and new Fios [...]

  • Money-Logo

    Meredith Sells Money Personal-Finance Site to Digital Advertising Firm

    After previously failing to find a buyer for Money — and shutting down the print edition — Meredith has found a new home for the personal-finance brand. Meredith announced Tuesday that it closed the sale of the Money brand to Ad Practitioners, a Puerto Rico-based digital advertising and media company that operates a network of [...]

  • Juice WRLD Sued by Yellowcard for

    Juice WRLD Sued by Yellowcard for $15 Million Over ‘Lucid Dreams’

    Juice WRLD has been sued by the pop-punk band Yellowcard for $15 million, who claim that the rapper’s 2017 song “Lucid Dreams” copies melodic elements of their song “Holly Wood Died,” according to a report in The Blast, citing court documents. The band, which split in 2017, are seeking $15 million, royalties and credit for co-ownership of [...]

  • Isaac Perlmutter Disney Marvel

    Does Kevin Feige's Marvel Promotion Mean Ike Perlmutter's Endgame?

    Last week’s move giving Kevin Feige charge of Marvel’s television, animation and print editorial operations should come as no surprise. As the architect of the company’s enormous film success, Feige arguably has the most enviable track record of any contemporary entertainment executive. Extending his creative control over more of the Marvel universe seems like a [...]

  • Walt Disney HQ LA

    Disney Seeks to Throw Out Gender Pay Gap Lawsuit

    The Walt Disney Co. is seeking to throw out a lawsuit alleging that women employees are paid less than men, arguing that the suit is too sprawling and unwieldy to handle as a class action. Andrus Anderson LLP filed the suit in April, alleging that Disney’s hiring and pay practices have a discriminatory effect on [...]

  • Cuba Gooding Jr

    Cuba Gooding Jr. Sued for Allegedly Pinching Nightclub Server

    A Tao nightclub server who alleges that Cuba Gooding Jr., pinched her rear-end last year has sued the Oscar-winning actor for sexual battery. Natasha Ashworth had previously come forward to New York law enforcement, though her name had not been released publicly. Gooding was indicted last week on four misdemeanor counts, including two counts stemming [...]

More From Our Brands

Access exclusive content