BANKRUPTCY FILING: Three companies belonging to Derek Anderson and Victor Kubicek, owners of the "Terminator" franchise rights and producers of "Terminator: Salvation," filed for Chapter 11 reorganization in U.S. Bankruptcy Court in Los Angeles. In a separate action, the two producers sued their primary investor. Anderson and Kubicek said in the suit that they couldn't make a required payment to Santa Barbara hedge fund Pacificor LLC, which helped finance the project because of a lien that Pacificor placed on a holding company through which they earned their producing fees on the movie.
GREEN DEAL: Southern California Edison signed an agreement with First Solar Inc. to build two photovoltaic solar power projects in the Inland Empire, each with a capacity of 550 megawatts. The Edison International unit said the projects would be in Riverside and San Bernardino counties, and provide enough power to supply 170,000 homes when completed in 2015. First Solar, based in Tempe, Ariz., is one of the world's largest producers of photovoltaic cells, which convert sunlight into electricity. The company will design and build the projects.
LEASE DEAL: Bankrupt commercial real estate company Meruelo Maddux Properties Inc. reached a deal to retain its largest tenant, downtown L.A. clothing company American Apparel Inc. The clothing maker inked a 10-year lease to remain at its 747 Warehouse St. property. Financial terms of the new lease were not disclosed. The lease is a coup for beleaguered Meruelo Maddux, which filed for Chapter 11 bankruptcy in March after announcing it couldn't make payments on $266 million in debt.
CEO REPLACED: Metro-Goldwyn-Mayer Inc., which is struggling with a roughly $3.7 billion debt load, replaced Chief Executive Harry Sloan with a team of senior executives and a well-known restructuring adviser. The new Office of the CEO includes Mary Parent, the company's motion picture group chairwoman, and Bedi Singh, chief financial officer. Stephen Cooper, co-founder of restructuring firm Zolfo Cooper, has been appointed vice chairman and also will be a member of the office. Sloan remains at the company as nonexecutive chairman. He joined the film studio last year under a three-year contract.
CREDITORS PLANNING: Tribune Co. creditors were reportedly moving to force billionaire Sam Zell from his post as chairman of the troubled Chicago media company that owns the Los Angeles Times and KTLA (Channel 5). Creditors are working on a Chapter 11 reorganization plan that would remove Zell and sell off the company's newspapers and broadcast stations. Investment banks and other lenders are owed $8.6 billion from Zell's leveraged takeover of Tribune in late 2007. The company filed for Chapter 11 in December.
MLK PROPOSAL: Los Angeles County supervisors voted unanimously to ask the University of California to enter into a partnership to reopen inpatient services at Martin Luther King Jr. Hospital by 2012. The plan has been the subject of intense closed-door negotiations for months, but the vote now authorizes the county to formally present the plan to the university's Board of Regents. Inpatient services at the Westbrook hospital closed in August 2007 after years of repeated failures to provide adequate care, including errors involved in multiple deaths.
PLEA DEAL: A Malibu man accused of trying to avoid paying taxes has agreed to plead guilty for failing to report more than $1 million he transferred to a Swiss bank account. John McCarthy will plead guilty to one count of failing to file a Foreign Bank and Financial Accounts report. He is expected to appear in court next month and faces up to five years in prison and fines totaling $250,000. McCarthy is the first person to be named publicly after the Swiss and U.S. governments reached a deal last week to settle American demands for the identities of suspected tax dodgers.
FINANCING FINALIZED: Steven Spielberg's new DreamWorks production studio said it finalized the first phase of a long-planned funding deal. The deal enables DreamWorks to make 18 to 20 films over the next three years and includes equity investment from Spielberg's partner, India's Reliance Big Entertainment.
ACQUISITION MADE: Motorcar Parts of America Inc., which rebuilds vehicle alternators and starters for cars and light trucks, said it bought certain assets of a privately held competitor. The L.A. company did not disclose terms of the deal, which was reached with owners of Reliance Automotive Inc., based in East Berlin, Conn. Chief Executive Selwyn Joffe said the deal will give his company a major automotive retail customer, but did not provide the name.
APPEAL FILED: Georges Marciano has filed an appeal with the California Supreme Court of a lower court ruling ordering the Guess Inc. co-founder to pay damages to five former employees who said they were defamed and suffered emotional distress when he sued them for embezzlement. An L.A. jury last month awarded each employee $74 million for a total judgment of $370 million, and the Second Circuit Court of Appeals earlier upheld the decision. Marciano, who is running for governor of California as an independent, said he was denied the opportunity to present a meaningful defense during the trial.
FRAUD CASE: Insurance Commissioner Steve Poizner announced that Joseph Baiden, 56, of Diamond Bar, surrendered to arrest over eight counts of workers' compensation insurance premium fraud against the State Fund. Baiden is being held on $1.64 million bail. Baiden faces a maximum of 40 years in prison as well as $3.2 million in fines.
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