In another setback for big-budget movie producer Carolco Pictures, the company disclosed Thursday that its proposed merger with video distributor Live Entertainment has fallen apart.
Cash-poor Carolco has warned that because it is so highly leveraged, raising money on favorable terms would be substantially more difficult if it failed to complete its merger with Live. It has also warned that it might not survive due to its funds crunch.
The unraveling of the Live negotiations comes at a bad time for Carolco, which would say only that the deal was called off for "a number of factors."
The company, which produced such box office hits as the "Rambo" series, "Terminator 2: Judgment Day" and "Basic Instinct," is scrambling to nail down funds needed to launch its big-budget picture "Cutthroat Island," starring Geena Davis and directed by her husband, Renny Harlin.
