You will be redirected back to your article in seconds

Relativity Bankruptcy: Carat USA Leads List of Unsecured Creditors (Read the Filing)

Updated

Carat USA, a media buying firm, leads the list of Relativity Media’s top 50 unsecured creditors, according to the company’s Chapter 11 bankruptcy filing.

The filing lists a claim of $36.8 million for Carat USA, but also notes that the claim is disputed. The money owed is listed as trade debt.

Other major creditors include Palisades Mediagroup, $5.2 million (trade debt); Cinram Group, $4.2 million (loan); Technicolor Digital Cinema, $3.4 million (trade debt); Technicolor, $3.1 million (loan); Cinedigm Digital Media Corp., $1.9 million (trade debt); Left Behind Investments LLC, $1.8 million (trade debt); American Express, $1.5 million (business credit cards); Say Media, $1.5 million (trade debt); and Kasima LLC, $1.0 million (trade debt).

In its filing, Relativity media lists liabilities between $500,000 and $1 billion, and assets estimated bewteen $100 million and $500 million. It estimates between 1,000 and 5,000 creditors.

Brian Kusher, a financial consultant designated by Relativity as the chief restructuring officer for the bankruptcy, put the total debt owed to vendors at $89.9 million.

Many of the major creditors are from P&A and distribution-related expenses. It is believed that the amount owed to Cinedigm, for instance, is related to virtual print fees that goes to pay off non-recourse debt.

But the list of creditors also includes debts to accounting and legal services, Major League Gaming and creditors related to its fashion division, including Alexander Wang Inc. and IMG Models. Among the production entities listed is Panay Films, with claims of $331,005.

Buddha Jones, which does creative campaigns for features, was listed on the filing with claims of $607,988. The company’s co-founder John Long said, “It is a substantial amount of money. It is obviously a situation where we have dedicated a lot of time and resources and talent.” But he said he didn’t anticipate having to make layoffs of their own from the financial hit, noting that the company, with 90 employees, has a broad-based clientele.

Buddha Jones worked on projects for Relativity like “Woman in Black 2,” “Lazarus” and “Before I Wake.”

“We were completely unaware of just how precarious the financial situation of the studio was,” he said, adding that “it was only very recently that it became public knowledge that the pieces weren’t holding together well.”

He said that perhaps “there is a bright side. It might free us up to work with our paying clients.”

Read the bankruptcy filing:

Relativity Media, LLC Petition

More Film

  • 'Last Men in Aleppo' Producer Denied

    'Last Men in Aleppo' Producer Denied Visa to Attend Oscars

    Updated Carat USA, a media buying firm, leads the list of Relativity Media’s top 50 unsecured creditors, according to the company’s Chapter 11 bankruptcy filing. The filing lists a claim of $36.8 million for Carat USA, but also notes that the claim is disputed. The money owed is listed as trade debt. Other major creditors […]

  • imdb

    Federal Judge Bars California's Actor-Age Censorship Law

    Updated Carat USA, a media buying firm, leads the list of Relativity Media’s top 50 unsecured creditors, according to the company’s Chapter 11 bankruptcy filing. The filing lists a claim of $36.8 million for Carat USA, but also notes that the claim is disputed. The money owed is listed as trade debt. Other major creditors […]

  • Cavalcade Get Out Best Picture

    Oscars: Best Picture Winner Poised to Rout History

    Updated Carat USA, a media buying firm, leads the list of Relativity Media’s top 50 unsecured creditors, according to the company’s Chapter 11 bankruptcy filing. The filing lists a claim of $36.8 million for Carat USA, but also notes that the claim is disputed. The money owed is listed as trade debt. Other major creditors […]

  • Black Panther Twitter

    The Brilliance of 'Black Panther' Helped It Avoid a Common Tentpole Movie Trap

    Updated Carat USA, a media buying firm, leads the list of Relativity Media’s top 50 unsecured creditors, according to the company’s Chapter 11 bankruptcy filing. The filing lists a claim of $36.8 million for Carat USA, but also notes that the claim is disputed. The money owed is listed as trade debt. Other major creditors […]

  • Marvel Studios' BLACK PANTHER..L to R:

    'Black Panther' Tops 'Star Wars: The Last Jedi' in Historic Opening

    Updated Carat USA, a media buying firm, leads the list of Relativity Media’s top 50 unsecured creditors, according to the company’s Chapter 11 bankruptcy filing. The filing lists a claim of $36.8 million for Carat USA, but also notes that the claim is disputed. The money owed is listed as trade debt. Other major creditors […]

  • Berlinale - 2018 - Stage 5,

    Stage 5, Die Gesellschaft Partner for ‘The Girl from Wereldend’

    Updated Carat USA, a media buying firm, leads the list of Relativity Media’s top 50 unsecured creditors, according to the company’s Chapter 11 bankruptcy filing. The filing lists a claim of $36.8 million for Carat USA, but also notes that the claim is disputed. The money owed is listed as trade debt. Other major creditors […]

More From Our Brands

Access exclusive content