Relativity Says Movie Assets to Be Taken Over by Kavanaughby
CEO Kavanaugh reaches deal to get all assets except TV unit
Relativity to file bankruptcy-exit plan with deal details
Relativity Media LLC, the bankrupt maker of films including “The Fighter” and “Act of Valor,” will be taken over by a group of investors led by Chief Executive Officer Ryan Kavanaugh under a proposal announced by the company Sunday.
The group, which didn’t release details of the proposed transaction, will file a reorganization plan with the federal court in Manhattan that has been overseeing the bankruptcy.
On Monday the company will return to court to seek approval for a separate deal, the sale of the television business to Relativity executive Tom Forman, the company said in the statement.
Release dates for movies that were postponed during the bankruptcy process, including “Masterminds,” “The Disappointments Room,” “Before I Wake,” “The Crow” and “Kidnap,” will be announced “in due course,” according to the statement.
After the reorganization plan is filed to allow Kavanaugh and the other investors to take over the non-television assets, Relativity’s creditors will get a chance to vote on the proposal. The judge overseeing the case will then make a final decision about whether to approve the reorganization plan.
On Friday, the company filed papers saying it plans to turn over the television business to creditors in exchange for cutting $125 million in debt, a transaction known as a credit bid.
Relativity filed bankruptcy in July after failing to negotiate a debt-relief package with creditors.
The case is Relativity Fashion LLC, 15-11989, U.S. Bankruptcy Court, Southern District of New York (Manhattan).