Relativity Media has proposed giving cash incentives to key executives in order to keep them on board as it winds its way through bankruptcy proceedings.
The company is looking for approval to pay $314,868 to president Tucker Tooley, CFO and co-COO Andrew Matthews, managing director Carol Genis, Relativity Television CEO Tom Forman and co-COO Greg Shamo, according to filings. Company founder Ryan Kavanaugh is not listed among the executives looking for compensation incentives.
“Relativity has created and is proposing these employee incentive and retention plans to help motivate and retain talent throughout the sale process, which will help us maximize the value of our assets,” a company spokesman said in a statement.
These staffers took a pay cut to remain with the struggling movie studio, the filings reveal. Their salary reductions amount to $795,000 and resulted in average pay reductions of 10.9%. Relativity also confirmed that after undergoing a series of layoffs in anticipation of its Chapter 11 filing, it now employs 84 full-time staffers and one part-time person.
The bankrupt movie studio is due in court Tuesday, hoping to receive approval from U.S. Bankruptcy Court Judge Michael Wiles for more of the $45 million interim financing it needs to keep operating before a sale can take place. An auction has been proposed for October, and there is a stalking horse bid of $250 million. That bidding group, comprised of secured creditors such as Anchorage Capital, Falcon Investments, Luxor Capital and Colbeck Capital, is trying to establish a floor for bidding.
The money for the incentives will be fully funded if Relativity sells for more than $254 million. The percentage of funding varies if it fails to fetch that figure.