Savoy Pictures Joins in Bidding for Orion

A new suitor for Orion Pictures Corp. emerged Thursday: Savoy Pictures Entertainment Inc., a film distribution company created in February with the backing of such high-powered media figures as New York investment banker Herbert Allen Jr.

Savoy’s preliminary proposal comes five days before Orion’s creditors must respond to an offer from New Line Cinema Corp., the company behind the “Ninja Turtle” movies. People close to the talks said Savoy bettered New Line’s proposal, but declined to provide further details.

Orion’s board has tentatively approved the New Line bid--which was made jointly with Orion’s chief shareholder, Metromedia Co.--but has the option of considering other offers.

Leonard White, Orion’s interim president, termed the Savoy submission “a very positive offer.” White held out the possibility of receiving other proposals since several entertainment companies have taken a look at Orion, which is mired in Chapter 11 bankruptcy reorganization.

A New Line spokesman Thursday said the company stands by its offer, which would give it a 46% stake in Orion. The spokesman said New Line considers its offer “formidable.”

Savoy Pictures Chairman Victor A. Kaufman refused to discuss his proposal, which has been rumored for weeks. Entertainment analysts, however, considered Orion a natural target for Savoy, which is trying to establish itself as a major film distributor with $100 million in seed money.

Savoy’s backers, besides Allen & Co., include Kaufman and Lewis J. Korman, both former Columbia Pictures Entertainment executives; Chicago’s Pritzker family, and Mitsui, a Japanese trading company.

Wilbur R. Ross Jr., an Orion bondholder representative, described Savoy’s bid as “very detailed” and “very different” from New Line’s.

“We take it quite seriously because of who the people are,” Ross said. “Whatever their reason, we’re glad to have them in the picture.”

Ross said the bondholders, who have also been given a Tuesday deadline for responding to New Line’s proposal, could reject one or both of the offers by that date. Like Orion’s White, Ross held out the possibility that other bidders will emerge in the coming days.

Orion, producer of the Academy Award-winning “The Silence of the Lambs,” filed for bankruptcy court protection in December. At that time, it listed $1.1 billion in assets and $973 million in liabilities.