Judge Says Relativity Media’s Bankruptcy Exit Plan Needs to Assure $80M Funding

by San Antonio Attorney

After six months of dispute, Relativity Media still suffers from bankruptcy filing involving the studio’s loose ends in their reorganization plan.  The studio intends to continue its operations amid Netflix’s effort to get the reorganization plan disapproved.

The judge wants to ensure that the monetary fund and stockholders such as Kevin Spacey and Dana Brunetti are safe from the filing.  However, this will only be approved when everything will be in place.

Ryan Kavanaugh, chief of Relativity Media said that this day was a remarkable one since the studio’s exit from bankruptcy can mean that it will soon be a stronger and sufficiently capitalized media company.  Kavanaugh also expresses appreciation for the support of the creditors and finance partners, along with the dedicated employees.

Kavanaugh added that they are excited for the company’s future.  Relativity Media co-produced hit movies such as Bridesmaids, Fast & Furious 6, Bridesmaids, The Social Network and Salt.  The studio also promoted mini budget pictures such as Immortals and Limitless.

Relativity Media, under hefty debt, has sold profitable unscripted division of television.  Some of its major creditors are RKA, Macquarie, Manchester and Cortland.  These measures reduced $630 million in debt.

The company has over $100 million in exit financing backed by Joseph Nicholas.  The funds will be used to release movies such as Kidnap and Masterminds.

Kavanaugh has projected that the company can raise about $100 million more in the next two years.  Nicholas, tripped but already gave his testimony and there are a lot of new investors.

The studio’s objectives is to release 22 films two years from now.  In the same year, the studio can protect $821.8 million in revenue and about $162 million in profit.

Leave a Comment

Previous post:

Next post: