We have all kinds of fun ideas for how Lionsgate can splurge with its new $340 million credit line, a kind of shocking development considering Wall Street's recent exodus from the deadly film-financing racket. The budget-minded 'Gate, having leapfrogged from one genre hit to another (accruing a $331 million cash war chest along the way, according to Variety) is evidently immune to the crunch, however, even nabbing a 2.25% interest rate we haven't seen since our very first student loans.

PrivacyWatch celebrity sightings are submitted by the loyal readers of Defamer. We'd like to remind you that this feature is powered by you, so if you want to see more installments of PrivacyWatch, then all you've got to do is to send us your sightings. Submit yours to tips[AT]defamer.com (please put "sighting" or "PrivacyWatch" in the subject line so we don't lose them) and tell everyone about the time you saw Eli Roth sucking face with a teenager when he should've been watching Schindler's List The Happening.

Is it possible that Lindsay Lohan has not only achieved sobriety but also a knack for irony to rival Jon Stewart? At a party celebrating her Paper Magazine cover yesterday (which features a sour-looking badass version of the Lindsay we once loved to hate), LiLo decided to show up wearing a "skirt" emblazoned with neon traffic signs (is it just us, or does that look less like a "skirt" and more like a tube top?). We hope that Eli Roth was in attendance at the party so he could exact revenge on the ageist nip-flasher by loudly muttering "too Spencer's" as she strutted by.

Lindsay Lohan doesn't have a rep for being the picky type when it comes to bumping uglies. Considering that her post-hab dating history includes flings with a snowboarder with debatable level of attractiveness and the perpetually frowny faced Sam Ronson, Lindsay has proven time and time again that it takes little more than the promise of a keybump or twelve to get inside her cokepants. Which is why we find ourselves cracking up at the way that leading Hollywood torture-pornographer Eli Roth's recent run-in with La Lohan went down, an encounter he detailed on his MySpace:

It's been a good run for Lionsgate marketing co-president and shock-artist-in-residence Tim Palen, whose groundbreaking work composing controversial Bijou-Phillips-beheading, Wienerdog-inverting (pictured), and director-dong-exposing imagery to promote the upcoming Hostel: Part II are getting exactly the kind of media attention the studio was surely hoping for, culminating in today's LAT story about his campaigns. But what makes selling a horror flick with an image of a naked Phillips toting her head around like a Prada purse any different than what the much-maligned Captivity crew (coincidentally, a movie also distributed by Lionsgate! Funny how that worked out.) did with their billboard tutorials on how to kidnap, torture, and execute Elisha Cuthbert? Palen explains to the Times::

We apologize in advance for subjecting you to this image of leading Hollywood torture-pornographer/ turkeysploitation visionary Eli Roth, but we felt that today's combination of disturbing Lindsay Lohan and Brian Grazer imagery, while certainly distressing on its own, probably wouldn't leave any lasting psychological scars. We are, however, giving the squeamish the opportunity to go no further and avoid the soul-chilling shock of discovering what lies beneath that Hostel: Part II logo by continuing on to this (very, very NSFW) post on NY Mag's Vulture blog, but here's a hint for those who haven't figured it out already: the altered photo is from a two-page spread entitled Eli Roth Has the Biggest Dick in Hollywood, from a book on the marketing of horror films by Lionsgate executive Tim Palen. Happy Monday!