Release of ‘Disappointments Room’: Relativity’s Slow Rise from Bankruptcy

by San Antonio Attorney

After suffering a bankruptcy cycle for more than 18 months, Relativity Media is back on the theaters with wide release.

Since the movie ‘The Lazarus Effect’ was released last February 27, 2015 in 2,666 theaters.  The company has risen from bankruptcy, since the business was bought by a group of hedge funds and Dana Brunetti was reinstated as the head of its film division.

Kavanaugh started out as a film financier before becoming known as a ‘Twitter pundit’.  Fortunately, Kavanuagh’s fate was not sealed as a failure as he is now releasing movies again.

‘The Disappointments Room’, a movie produced by Relativity Media, was finally released in theaters last weekend after two years of being halted post-production.  The horror movie stars top-billed actress Kate Beckinsale.

Prior to the studio’s financial crisis, Kavanaugh raised millions of dollars that could have reduced the company’s investing risk through a simple mathematical approach.  Despite bankruptcy filing, Kavanaugh has not given up on his lifetime work.  Relativity Media has projected that 22 of its movies can generate a huge profit and even Kavanaugh has projected that the income will absolve the company of its financial debt, it is still left uncertain if this projection would come true.

Video-on-demand has defined Relativity Media’s underwriting.  However, the movie ‘Disappointments Room’ is expected to gain fairly negligible revenue despite its negative reviews.

Relativity won a court ruling last May as part of the bankruptcy proceedings.  This ruling will prohibit releasing ‘Disappointments Room’ and ‘Masterminds’ into its streaming network.  Relativity Media claimed that a limited theatrical release will increase revenue.

If the sole basis of increasing financial gain is the release of ‘Disappointments Room’, it never would have made much of a difference.  It is still fairly premature to conclude if the movie release will turn into profit but Relativity Media still looks on the positive side to make waves instead of a splash.

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