Relativity Media Plans to File an Objection to Bankruptcy Consultant’s Fees

by San Antonio Attorney

The Official Committee of Unsecured Creditors of Relativity Media intends to file an objection in the U.S. Bankruptcy Court because of the fees being claimed by FTI Consulting for its services to the studio’s Chapter 11 bankruptcy case.

FTI claimed in a filing in December that the bankrupt studio owed $4.58 million in fees plus $251,504 for expenditures to include the firm’s service from the time the company filed for bankruptcy in July until September.

Relativity mentioned an inquiry by a special team of its board of directors as grounds for the objection.

According to Relativity, FTI made many business decisions that Relativity directors were not made aware of.  One of them is discarding a proposal to sell the company’s fashion division in addition to a range of employment decisions.

The Relativity’s Chapter 11 reorganization plan is scheduled for a confirmation hearing on February 1.  The company has bought Trigger Street Production Company and Kavanaugh chose Kevin Spacey as the chairman and Dana Brunetti as the president.

Kavanaugh expressed that he hopes to continuously work with the creditors committee to make sure that “no party could be successful in pursuing actions that would threaten the company.”

But according to FTI’s Brian Kushner, the Kavanaugh’s statement did not coincide with what he said before the bankruptcy filing.  Kushner, the previous Chief Restructuring officer of Relativity, told the bankruptcy court that Kavanaugh said in the Summer of 2015 that he did not want to sell its assets.  He added that Kavanaugh opted to work, but failed, to get enough funding mostly by means of equity investments.

Leave a Comment

Previous post:

Next post: