Orion Turns Over Big Slice of New Film’s Take : Entertainment: In return, the studio’s top stockholder and a partner will invest $23 million. The development suggests further trouble at Orion.

In a development that points to further trouble at Orion Pictures Corp., the company has surrendered a sizable portion of the proceeds of one of its latest films to majority shareholder John W. Kluge and a partner in return for a $23-million investment.

Under the deal, Kluge and Stuart Subotnick, executive vice president of Kluge’s Metromedia Co., will apparently receive as much as 64% of certain studio proceeds from “Mermaids,” according to a Securities and Exchange Commission filing. Orion will retain ownership of the copyright and will continue to control distribution and marketing of the movie.

Kluge and Subotnick made the investment under a joint-venture partnership called MetMermaids. Their security interest in certain gross receipts from “Mermaids” will remain in effect until their investment is recouped, the filing indicates.

While details were sketchy, the deal apparently ensures that Kluge and Subotnick will also receive advances from Orion’s next film, “The Silence of the Lambs,” if they do not receive an adequate return from “Mermaids.”

“Mermaids,” a romantic comedy starring Cher and Winona Ryder, appears to be sinking at the box office. The movie placed 11th with theatergoers nationally over the long Christmas weekend. With receipts of $8.3 million, it is expected to fade from view fairly quickly.

An Orion spokeswoman declined comment on MetMermaids’ deal, saying she could not reach top company executives for an explanation.

Financial analysts were also at a loss to explain the arrangement. One, who asked that his name not be used, said Kluge and Subotnick appeared to be making an effort to sidestep the stock market.

“It almost says that if they can’t get their money out of the stock market, they’ll get it directly by participating in the films,” the analyst said. “It sounds like Kluge has just gotten frustrated. This is money that will come directly from company profits.”

Kluge, who owns 70% of Orion, is said to be disenchanted with the movie business, and some sources say he is anxious to sell his stake in the company. Orion retained Salomon Bros., the New York investment banking firm, in October to seek new funding sources.

One bright spot for the company is Kevin Costner’s “Dances With Wolves.” It grossed more than $46 million in its first 47 days and is still gaining momentum. It was the fifth most popular movie at the box office this past week.

Orion, which is based in New York, is best known as the producer of Woddy Allen’s movies. The company realized $15.1 million in profit on revenue of $485 million, according to reports. Kluge reportedly purchased his stock at a range of $14 to $19 a share over the years. He also exercised warrants to buy 4.3 million shares at $6 apiece a month ago.

Orion’s stock, which has sold for as much as $23.75 a share and as little as $6.875 this year, closed unchanged at $13.875 in New York Stock Exchange trading Thursday.

Recent reports have had a couple of foreign buyers expressing possible interest in Orion.

One, the giant Samsung Group of Korea, denied that it is a possible suitor.