- Sale agreement comes after failed auction for entire company
- Deal must be approve by judge overseeing company bankruptcy
Relativity Media LLC, the bankrupt maker of films including “The Fighter” and “Act of Valor,” agreed to turn over its television business to a group of lenders in exchange for cutting $125 million in debt, the company said in a court filing.
Relativity reached the deal after no other bidders offered to buy the entire company at an auction, which had a starting bid of $250 million. The lenders had originally agreed to make a so-called credit bid.
When no other bids came in that met the sales criteria, the lenders cut their offer in half and agreed to buy only the TV assets, the company said in the filing. Relativity said it will reorganize its remaining assets under a plan to exit bankruptcy.
Anchorage Capital Group LLC and Luxor Capital Group LP had been among the lenders backing the original $250 million offer.
Relativity filed bankruptcy in July after failing to negotiate a debt-relief package with creditors.
David Shane, a spokesman for Relativity, declined to comment.
The sale must be approved by the judge overseeing the company’s bankruptcy.
The case is Relativity Fashion LLC, 15-11989, U.S. Bankruptcy Court, Southern District of New York (Manhattan).