Relativity Media Claims All Objections to Bankruptcy Plan Have Been Resolved

by San Antonio Attorney

Ryan Kavanaugh, Relativity Media and CEO, have claimed to resolve all remaining objections to the company’s reorganization plan to exit Chapter 11 bankruptcy, according to a filing in U.S. Bankruptcy Court.

The documents explain that the film studio will represent itself through a Monday hearing, which Judge Michael Wiles can provide the opportunity for Relative Media to resume operations independently.

The film studio stated that only one secured lender opposed their reorganization plan, that also bears endorsement of Creditors Committee and also other who have 85% of unsecured debt of the company.

Kavanaugh and financier Joseph Nicholas will be in charge of the company, according to Relativity. Retained executives will include Managing Director Carol Genis and Chief Communications Officer David Shane.

Relativity stated that it still has four completed but unreleased films and the value of these assets can only be quoted when the reorganization plan will take place. The studio still has to render an undisclosed amount for actor Kevin Spacey and Trigger Street Productions.

The studio will be provided with a balance sheet of approximately $500 million.

Netflix, a popular online streaming site, revealed that it wants to opt out of Relativity’s movie licensing agreement since it is not definite that the studio can maintain producing an ‘undisclosed number’ of movies annually.

Netflix stated that the studio is highly dependent on their licensing payments and every attempt to amend may not be reliable.

In response, Relativity promised that it can meet the requirements through own films and acquired distribution rights from third parties. If this will not live up to the deal, Netflix will be paid $5 million per film below threshold.

“There is no need to consider if a plan is feasible or not without Netflix”, said Relativity.

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