Relativity Media Gains Time to Complete RefinancingAnousha Sakoui
Relativity Media LLC, the independent film studio led by Ryan Kavanaugh, said it won additional time from lenders to complete a refinancing.
“This forbearance agreement ensures Relativity additional liquidity as discussions continue,” the Beverly Hills, California-based company said Monday in an e-mailed statement.
The accord with the unidentified lenders extends to an unspecified date the repayment deadline on loans of at least $250 million that came due at the end of May. Relativity has been battling reports of shaky finances and last week accused some investors of trying to gain control of the company.
Two investors, Jason Colodne and Jason Beckman, partners in Colbeck Capital, left the board last week in a dispute over the future of the company. Relativity had previously said its refinancing efforts were completed. The investors were part of a group that led $350 million in financing three years ago.
Relativity last week also postponed the release of a third film scheduled for the summer, pushing its Sundance Film Festival acquisition “The Bronze” to October. The next release on the company’s schedule is “Masterminds” set for theaters on Aug. 19.
Lenders have granted Relativity a 30-day extension to secure its financing and provided about $60 million for payments that were due May 31, the Hollywood Reporter said. Relativity declined to comment.
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