Company Town

Film: Ailing Carolco Pictures confirmed that it is considering filing for protection under Chapter 11 of the U.S. Bankruptcy Code. Carolco said it does not have enough cash or financing resources to meet its operating expenses and scheduled debt obligations during the next 12 months. The company said it expects continued losses through 1995. Carolco also said its independent auditors have stated that substantial doubt exists regarding the company’s ability to continue as a going concern. The struggling producer of such hits as “Terminator 2: Judgment Day” and the “Rambo” series disclosed last week that the release of its big-budget “Cutthroat Island,” starring Geena Davis and Matthew Modine, is being pushed back until the holiday season. Carolco said it lost $43.4 million in 1994 on revenue of $59.3 million. It said the majority of feature film revenue in 1994 came from foreign theatrical, video and pay-television releases, as well as U.S. network fees for “Terminator 2” starring Arnold Schwarzenegger, “Basic Instinct” with Sharon Stone and Michael Douglas, and the 1992 action film “Universal Soldier” with Jean-Claude Van Damme.