Pacificor has won the rights to the "Terminator" franchise following a five-hour bankruptcy auction on Monday night, TheWrap has confirmed.
The California hedge fund beat out suitors such as Lionsgate and Sony to secure the rights to any future films, DVDs, and games starring the post-apocalyptic cyborgs for $29.5 million.
They had to make certain concessions, however. Including allowing previous owner, the debt plagued Halcyon Holding Group, to retain revenues from the third and fourth installments of the franchise and reportedly agreeing to pay them $5 million for any "Terminator" movies that get filmed going forward.
In an odd turn of events, Pacificor had financed Halcyon's 2007 purchase of the series rights.
Going into Monday's auction, Lionsgate was generally thought to be the most ardent bidder, and Pacificor's winning offer was somewhat unexpected given that the two hedge funds have a tangled legal history.
Last August, Halcyon filed a lawsuit in L.A. Superior Court accusing a former Pacificor hedge fund employee, Kurt Benjamin, of fraud and conspiracy and seeking $30 million in damages. Halcyon filed for Chapter 11 last summer, in part because it could not meet its financial obligations to Pacificor. The deal between the two companies reportedly wipes the slate clean for Halcyon, freeing them of their remaining debts.
Halcyon originally paid $30 million for the "Terminator" rights. Earlier, a spokesman for the company said it believed the franchise's value exceeded the amount that it initially paid. The lower than hoped for bid could be explained by "Terminator: Salvation"s' disappointing $372 million gross on a $200 million budget.
Representatives from Halcyon and Pacificor declined to comment.
A hearing will take place in bankruptcy court on Wednesday when the deal between the two companies is expected to be finalized.
Update: According to the Los Angeles Times, Sony Pictures and Lionsgate Entertainment are now in talks with Pacificor to jointly take control of the property. The movie companies would handle production for the hedge fund, which has no experience in that arena, according to the Times.
