Bankruptcy Judge Orders Relativity Media to Pay the Fees Charged by Former Bankruptcy Advisor

by San Antonio Attorney

As both parties engage in ‘petty bickering’, the United States Bankruptcy Court Judge Michael Wiles has mandated Relativity Media to comply with 80% of the fees charged by its former restructuring advisor, FTI Consulting.

Relativity has questioned the $4.58 million FTI charged for its work and another $251,504 for its own expenses.  The firm allegedly exceeded authority in making decisions, which did not serve the studio.  FTI billed the expense for the work done through the end of September.

The judge stated that the expected initial payment authorized strongly urges the company to pay FTI at least 80% of the fees and expenses filed unless there was objection to it.  Relativity did hold any objection when the expense claims were created. This order was created impartially thus the order shouldn’t be viewed as a judgment on any objections the company has reserved for.

Wiles had enough of petty bickering appearing in all aspects of media.  Minor disappointments were not to be tolerated, in different directions.  Relativity unsecured creditors can feel tension rising between the two factions and added that there’s ‘animus’ at both sides.

The committee reminded the judge that the dispute should not distract from the February confirmation hearing for the fallen studio’s plan to recover from Chapter 11 bankruptcy protection.  In addition, the ruling of the fight of Relativity and FTI, concluded by ordering the studio to start from scratch again to fix a technical dispute that involves terms of debtor in possession agreement.  Relativity referred to the terms to have the requirement of : essential, albeit modest, modifications.

During a private meeting Wiles extended deadlines for each of the parties in negotiating DIP terms. This didn’t move the February 1 date for confirmation.

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