You will be redirected back to your article in seconds

Netflix Concerned Whether Relativity, Or Potential Buyers, Can Deliver Promised Content

For bankrupt Relativity Media, one silver lining appeared to come in the form of its ongoing contract to provide content for Netflix. One confidential document from a Relativity lender put the value of the deal at $56 million or more.

But Netflix filed papers in U.S. Bankruptcy Court in Manhattan Wednesday afternoon suggesting that it has concerns about Relativity being able to deliver the minimum number of films a year called for in its contract. Though that number is not specified, the streaming service’s filing says that Relativity has “to date, provided only two films to Netflix in 2015,” and adds: “This gives rise to substantial concerns regarding whether [Relativity] will be able to meet their yearly minimum for the 2015 calendar year.”

The Netflix court filing says the company has no immediate objection to Relativity’s plan for a quick sale but that the company wants more controls built into the sales procedure to make sure that any new owner is in a position to deliver the contracted minimum number of films. The current quick deadlines, with an auction scheduled for Sept. 16, would not give Netflix enough time to judge a potential future partner, the company’s legal motion says.

Netflix’s deal with Relativity runs through 2018.

“Netflix is confident,” the motion states, “that the bidding procedures can be modified so as to allow [parties to the sale] to appropriately evaluate and respond to the proposed assumption and assignment of their contracts without unduly interfering with the Debtors’ overall sale process.”

Netflix’s motion asks the court to allow it to have time to assert any objections to any potential new partner. It also asks for the right to conduct discovery to discern whether the potential new partner is up to the task of providing the online subscription service with the content it needs.

The motion was filed just before a Wednesday afternoon deadline for objections to the bankruptcy auction. A hearing is set for Friday morning.

Relativity filed for bankruptcy July 30, citing nearly $1.2 billion in liabilities and assets it claimed are worth $560 million. Some financial analysts and hedge fund operators looking at the TV- and film-maker believe that the company is worth considerably less.

The senior lenders are attempting a quick auction. Lawyers from the firm of Jones Day, representing  Anchorage Capital Group, Luxor Capital Group and Falcon Investment Advisors, say the early sale will help preserve the maximum value of the company for all of the creditors.

More Film

  • Judi Dench

    ‘Blithe Spirit’ With Judi Dench, Dan Stevens, Isla Fisher Scores International Sales

    Filming has started on “Blithe Spirit,” an adaptation of Noel Coward’s classic comedy about love that just won’t die. Judi Dench, Isla Fisher and Dan Stevens are among the cast in the picture, which is helmed by Edward Hall (“Downton Abbey”). Protagonist has closed a raft of pre-sales on the project, which was previously adapted [...]

  • Edward Cheng, Tencent Pictures CEO

    Tencent Pictures Line-Up Mixes Hollywood Content and China Propaganda

    A slate of Chinese propaganda films rubs shoulders with high-profile Hollywood movies on Tencent Pictures upcoming line-up.  The firm confirmed its investment in U.S. projects including: TriStar Pictures’ “A Beautiful Day in the Neighborhood,” a film about beloved TV host Mr. Rogers, starring Tom Hanks; “Monster Hunter,” Paul W.S. Anderson’s next film adaptation of a [...]

  • Night scenery of the Bund in

    Shanghai: Festivals Grapple With How to Stay Relevant in the Digital Era

    Festival organizers from around the world on Tuesday discussed the challenges of remaining relevant in a digital era at a Shanghai International Film Festival forum. The Festival do Rio’s executive director Ilda Santiago noted that online platforms are now an unavoidable part of the film business and creative process, and that “of course not all [...]

  • Kiernan Shipka and Ross LynchMTV Movie

    MTV Movie & TV Awards: What You Didn't See on TV

    Many of the biggest stars in movies and television — including Dwayne “The Rock” Johnson, Jada Pinkett Smith, Kiernan Shipka, Sandra Bullock, Tessa Thompson and Brie Larson — came together to present and receive honors at the 2019 MTV Movie & TV Awards, hosted by “Shazam!” star Zachary Levi. And while non-attendees are able to enjoy [...]

  • Johnny BananasMTV Movie & TV Awards,

    'The Challenge' Veteran Crashes MTV Awards Acceptance Speech; Cut From Broadcast

    Johnny “Bananas” Devenanzio pulled a Kanye West at Saturday’s taping of the MTV Movie & TV awards when “Love & Hip Hop: Atlanta” won over “The Challenge” in the Reality Royalty category. However, viewers didn’t get to see it. Producers of the show cut out Devenanzio’s speech from Monday’s airing, after the reality star took [...]

  • Zachary LeviMTV Movie & TV Awards,

    MTV Movie & TV Awards Winners: The Complete List

    The MTV Movie & TV Awards returned to television Monday, with host Zachary Levi and a number of pop culture favorites. Dominating this year’s nominations with four apiece were front runners “Avengers: Endgame,” which took home the evening’s best movie award, and “Game of Thrones,” which won best show. The Oscar-nominated documentary “RBG” also scored [...]

More From Our Brands

Access exclusive content