New Owners Plan To Kick In $75M Resulting In Relativity Television Having No Debt

by San Antonio Attorney

Relativity Television Tom Forman are close to sealing the deal of new contracts using hedge funds in mobilizing the purchase of the operations, according to a recent interview in the U.S. Bankruptcy Court in New York today.

Judge Michael Wiles approved the company’s deal last week in order to have a turnover for the funds, otherwise known in the case as Stalking Horse Bidders. The group will include other financial ginats such as Colbeck Capital, Anchorage Capital, Falcon Investment Advisors, and Luxor Capital. They have reached an agreement in return to grant debt forgiveness of $125 million worth of Relativity’s debt. The sale will end its deal by October 20.

“The TV business is already a profitable and positive cash flow-producing venture, with a historical track record of growth,” said Forman, during a court filing.

“In fact, notwithstanding the distractions of a bankruptcy, 2015 is on pace to be another record year for the TV Business for episodes delivered, revenues and EBITDA,” he further added.

Relativity TV,under a new ownership will aim to have“a debt free balance sheet with no long term debt enhanced by a capital contribution of at least $75 million” according to Forman.

Relativity TV will also possess a stable work force based by the investor’s contract in order to provide a steady stream of salaries and benefits to existing employees. Forman concluded that all of the major producers involved will consent to how the contracts are assigned. This will ensure the producers’ enhancement of focus towards development and production.

Relativity TV has three months to remodel itself as a network. The shows consist of: CBS’ “Limitless,” MTV’s “Catfish: The TV Show,” and Lifetime’s “Kim of Queens.” The current operation accounts for almost 19% of Relativity Media’s $501.1 million in revenues last year.

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