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LStar Capital Pulls Out of on $200 Million Movie Financing Deal with Sony Pictures
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15 Jul 2017 02:06 AM EST

Texas-based LStar Capital, a subsidiary of private equity company Lone Star Funds, has pulled the plug on its $200 million slate financing deal with Sony Pictures. LStar, which has been a financing partner on about 30 Sony films since closing its slate deal in 2014, has stopped making new contributions to the fund after suffering a series of box-office flops such as “The Brothers Grimsby,” “Concussion” and “Passengers.” It’s unclear how much the company has already invested in the fund and how much more was expected. The withdrawal of new funding comes after LStar hired advisers earlier this year to sell its Sony library to cover some of its losses on the 25 percent equity stake in the studio’s films it owns. The size of those losses is not known but insiders say the value of LStar’s Sony library has been diminished greatly in value. Not great news for Sony, which owns the other 75 percent equity in the titles. No new investors have stepped up in the two months since the deal has been shopped. LStar’s move is a blow to Tom Rothman, who took over as chairman of Sony Pictures' Motion Picture Group in February 2015.

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