Metromedia Looking to Unload Stake in Orion : Entertainment: The movie company, controlled by John Kluge, has a $12-million debt payment due. It has tried to sell films to raise cash.

Metromedia Inc., which is controlled by billionaire John Kluge, said Thursday that it is exploring the sale of its 68% stake in financially troubled Orion Pictures Corp.

In a filing with the Securities and Exchange Commission, Metromedia said it has retained the investment firm Salomon Bros. to advise it on the possible sale of all or part of its stake. Salomon was earlier retained by Orion to seek new capital for the studio but has found no investor so far.

Despite widespread rumors that Orion would be sold, neither Kluge nor officers of the studio would confirm until now that Metromedia was seeking to unload its approximately 15 million shares. That stake is worth about $154 million, based on Orion’s closing price Thursday of $10.25 a share on the New York Stock Exchange. The shares rose 62.5 cents before word of the Metromedia filing surfaced.

Metromedia last week named an additional five members to Orion’s board, giving it seven representatives on the 12-member panel. Several individuals familiar with Orion’s dealings said Kluge had become extremely active in the company’s affairs in recent days and is expected to visit Los Angeles next week, apparently in an attempt to find a buyer for his stake.

Orion has been seeking to sell five of its forthcoming films to other studios for more than $70 million to raise cash. Some Orion executives said they didn’t believe that a buyer has been found for the films.

Paramount Pictures, Universal Pictures and Columbia Pictures have expressed interest in the films, but none of the studios appeared to have a deal as of late Thursday. Orion faces a $12-million interest payment on its $500-million-plus debt today. The films include “Robocop III,” “Bill and Ted’s Excellent Adventure II” and “The Addams Family.”

Hollywood executives who are familiar with Orion’s dealings said a plan under which Castle Rock Entertainment hoped to purchase all or part of the studio didn’t appear likely to materialize because the company still lacks financial backing. Castle Rock is 34% owned by Columbia Pictures Entertainment, which in turn is owned by Sony Corp.

But one of the executives said Columbia is interested in some transaction that would give it a stake in Orion, largely to avoid losing $125 million that it has already advanced for certain distribution rights to 50 future Orion films.

Ironically, Orion scored heavily in the Oscar race this week, with 19 nominations--more than any other studio. “Dances With Wolves,” which has taken in more than $100 million at the box office, received 12 nominations, including those for best director and best picture.