ENTERTAINMENT AND MEDIA

Orion Plan Proposed: Metromedia Co. and New Line Cinema Corp. said they have reached an understanding to jointly propose a plan of reorganization for Orion Pictures Corp., which filed for reorganization under Chapter 11 of the bankruptcy code on Dec. 11. Under the plan, Metromedia, a communications concern owned by reclusive financier John W. Kluge, would buy an 11% stake in New Line. In return for New Line’s investment in Orion, New Line could possibly get distribution rights to Orion’s valuable film library and new releases, earning fees from a reorganized Orion for providing services. The proposal would pay Orion’s trade creditors, profit participants and secured bank lenders in full. Other creditors would get stock in a reorganized Orion and other consideration.