I think it came out on TV as part of MGM at the movies. The movie is totally animated and it involves a giant black bird that delivers nightmares to children, and a nightmare queen. It was visually stunning for its time. I saw it just once and have never heard of it again.

Nightmares delivered by big
Black birds,.

There wasn't a queen in this feature.
The nightmare maker Synonymous Botch
Was behind the evil plot, but could it be

Twice Upon a Time

-More Info-
--------