Company Town : Schwarzenegger’s ‘Crusades’ on Hold

Sources close to producer Carolco Pictures confirmed that the big-budget Arnold Schwarzenegger film “Crusades” has been postponed and may be revamped to lower its spiraling budget.

Carolco declined comment, but published reports have said that the budget of the film, to be directed by Paul Verhoeven, may have soared to more than $100 million. The picture has been in pre-production.

The film was to have been released by MGM/UA under a distribution deal with Carolco that recently took effect.

The film was to begin shooting this fall in Europe and North Africa, with Schwarzenegger portraying a knight.

Carolco, which produced Schwarzenegger’s hit film “Terminator 2: Judgment Day,” underwent a much-needed financial restructuring last October.

Last week, the company reported that its loss in the first quarter narrowed to $2 million from $6.8 million a year earlier, although revenue fell to $23 million from $35.6 million in the year-ago period.

A report in the Hollywood Reporter said that Schwarzenegger has been willing to take less than his typical salary--more than $15 million these days--and receive merchandising rights in lieu of the payments.