The judge overseeing the Relativity Media bankruptcy case rejected a call by one of the entertainment company’s lenders to postpone a Monday morning hearing about Relativity’s reorganization plan.
U.S. Bankruptcy Court Judge Michael Wiles ruled Friday evening in New York that he would hear arguments on Relativity’s plan for emergence from Chapter 11 at the previously scheduled time, 10 a.m. EST. Wiles’ ruling rejected an appeal by CIT Bank — which loaned money for production of two films — to delay the hearing for at least one week.
The bank argued that Relativity had not disclosed enough information about how it would fund itself when it exits bankruptcy. CIT said in a letter to Wiles earlier Friday that Relativity has “set the stage for a grossly unfair confirmation hearing, apparently designed to deprive CIT of even the most basic information necessary to prosecute its objections.”
Relativity responded that it had provided the requisite information, if somewhat belatedly, and noted that most of the other parties in the case had agreed to the reorganization plan.
In allowing the hearing to go ahead, Wiles said that CIT Bank would be able to raise its objections again Monday if it “believes at that time that it has been prejudiced.” Netflix and Relativity investor VII Peaks Capital have also objected to the reorganization plan, while the company’s biggest lenders and others associated with hedge fund Elliott Associates have signed off on the new arrangement.