Open Road will be sold to Raven Capital Management for $87.5 million after an auction for the film company’s assets was canceled for Wednesday, according to documents filed in a Delaware bankruptcy court as obtained by TheWrap.
After Open Road filed for Chapter 11 bankruptcy back in September, they entered into an agreement with Raven, a stalking horse bidder. But with no other bidders submitting a qualifying bid that matched Raven’s offer, Open Road informed a Delaware bankruptcy court that it will authorize the debtors to enter into an asset purchase agreement with Raven.
The sale hearing to consider the approval of the sale will take place on Friday, Nov. 9 at 10 a.m. ET.
The Donald Tang-owned Open Road, which became Global Road, owns a film library that includes the Best Picture-winning “Spotlight” as well as “Nightcrawler,” “Dope” and “Side Effects.” The company filed bankruptcy after coming off the box office bomb “Hotel Artemis” and ahead of the “A.X.L.” flop. At the time, the studio was also contending with its lawsuit-stricken Johnny Depp project “City of Lies.”
The company filed for bankruptcy on Sept. 6 after failing to raise $200 million in financing. Open Road reported at the time it had somewhere between $100 million and $500 million in liabilities.
According to the terms of the stalking horse agreement, the stalking horse bidder would be entitled to a $2.1 million break-up fee in the event the company is outbid at the bankruptcy auction slated for next month. The stalking horse bidder will also be entitled to up to $800,000 in expenses so long as the judge approves the deal.
Showtime, Entertainment One, Viacom and Turner were among the companies that filed limited objections to the assumption of contracts.
Pamela Chelin contributed to this report.
'Nutcracker' and 10 More of the Biggest Bombs in Box Office History (Photos)
Even though Disney is currently the king of the box office, they aren't immune from a big misfire. With a $130 million budget and a $20 million opening "Nutcracker and the Four Realms" is shaping up to be one of 2018's biggest bombs. But will it be as infamous as some of these all-time flops?
Disney
"Ishtar" (1987) -- With reports of a rocky production and a budget that got way out of hand, critics and the Hollywood trades savaged Elaine May's adventure comedy starring Warren Beatty and Dustin Hoffman as it made just $14 million. For years, it was considered one of the worst films ever made, but is now considered by some to be a stealth success.
Sony Pictures
"47 Ronin" (2013) -- Though Keanu Reeves was on his game in the action scenes, this Japanese fantasy was panned for its story and cost Universal big, as it failed to make back its $175 million budget.
Universal
"Cutthroat Island" (1995) -- Geena Davis, still hot from "Thelma & Louise," found her star diminished by this infamous pirate comedy that only made $10 million against a $98 million budget. The script, cast and footage were repeatedly overhauled, and this bomb convinced Hollywood that pirate movies were poison... until "Pirates of the Caribbean" came around eight years later.
MGM
"The Black Cauldron" (1985) -- Known in animation history as the movie that nearly bankrupted Disney. With a then-animation record $44 million budget and Disney's first ever PG rating, it was a big risk for Disney that failed to pay off with just $21 million grossed. Fortunately, Disney held on and went on to kick off their Renaissance with "The Little Mermaid" four years later.
Disney
"Treasure Planet" (2002) -- On the other end of the Disney Renaissance was this labour of love from longtime Disney animators Ron Clements and John Musker. Sadly, this $140 million film supplanted "Black Cauldron" as Disney's biggest flop with just $110 million grossed, as families turned out to see "Harry Potter" instead. Still, the film has earned a cult following among Disney buffs.
Disney
"Ballistic: Ecks vs. Sever" (2002) -- Two months before "Treasure Planet" came this $70 million action film about dueling spies (Antonio Banderas and Lucy Liu) that only made $14 million. But unlike "Treasure Planet," it was... and still is ...known as one of the worst movies ever made.
Warner Bros.
"The Adventures of Pluto Nash" (2002) -- Wow, 2002 had a lot of really bad bombs, didn't it? Eddie Murphy appears on this list thanks to a $100 million sci-fi comedy that only made $7 million and cost Warner Bros. $131 million. Fortunately for WB, the "Harry Potter" films easily bailed them out.
Warner Bros.
"Gigli" (2003) -- One of the most infamous movies ever made, one which launched 10 thousand tabloid articles. With a $75 million budget and just $7 million grossed, it was an albatross around Ben Affleck's neck until he won the Best Picture Oscar for "Argo" in 2012.
Columbia Pictures
"Waterworld" (1995) -- Maybe not one of the biggest flops, but certainly one of the most well-known. With a much-publicized troubled production which saw Kevin Costner take over as director, what was supposed to be a tentpole release for Universal ended up only making $262 million against an inflated $175 million budget that, at the time, made it one of the most expensive productions in Hollywood history.
Universal
"Heaven's Gate" (1980) -- This is the big one. A film that bombed so hard with just $3.5 million grossed that it led to the bankruptcy of one of Hollywood's most well-known studios, United Artists, and destroyed director Michael Cimino's reputation. But time has been kind to Cimino and "Heaven's Gate," with critics praising the film years later with an extended director's cut being hailed as a masterwork.
MGM
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”Nutcracker and the Four Realms“ isn’t working with audiences, but it could be much worse
Even though Disney is currently the king of the box office, they aren't immune from a big misfire. With a $130 million budget and a $20 million opening "Nutcracker and the Four Realms" is shaping up to be one of 2018's biggest bombs. But will it be as infamous as some of these all-time flops?
Disney
Sony Pictures
