Relativity TV Opts For Post-Bankruptcy Growth Plan of $75 Million Capital Infusion

by San Antonio Attorney

The post-bankruptcy plan for the company formerly known as Relativity Television will consist of new proprietors but with the old executive team.

Investors such as Luxor Capital, Falcon Investment Advisors and Anchorage Capital move in acquiring Relativity’s television assets was finalized in the bankruptcy court in New York last Tuesday.  The newly acquired entity still has no name.

Tom Forman, Relativity TV’s CEO has formally agreed to retain his position in the company.  Andrew Marcus, the company’s managing director, has been promoted to president and chief operating officer.  Both are negotiation to set a new deal with the company staffers.

The freshly bought company will receive $75 million influx of capital in form cash and credit lines of credit to aid in its operations in both scripted and unscripted production.  The new company will be governed by a five man board of directors.

Forman and Marcus possess equity stakes in the newly modified company.  The investors gave the two employees full assurance that they will aim to make the new Relativity TV promote its longevity as an investment.

The court session last Tuesday commenced a new objective for Relativity TV.  Before the court order, the company suffered tremendously in the past three months.

Relativity Media, the parent company, filed for bankruptcy protection last July 30 due to a pending $1.2 billion in debt.  The profitable television operation was unscathed but still held the stigma of retribution for Ryan Kavanaugh, Relative Media Founder.

Relativity’s three largest debtholders, who were owed more than $360 million dollars, reached an agreement to acquire television assets valued at $125 million.  Kavanaugh and a group of investors are in the process of working out a deal in purchasing what is left of Relativity Media.

Leave a Comment

Previous post:

Next post: