A bankruptcy court will hear objections Tuesday to the speedy auction of Relativity Media, though lawyers for the company now say they think most hurdles have been cleared. A financial adviser says that a total of 14 would-be bidders have reviewed financial details about the troubled entertainment concern.
The new details were revealed in filings Friday by Relativity’s lawyers, who are pushing for an Oct. 1 auction of the Beverly Hills-based maker of films and television programs.
The Blackstone Group, which is helping lure bidders for the proposed auction, filed a report showing that it has contacted 49 potential “strategic” buyers and 49 potential “financial” buyers. None of the would-be buyers are identified in the report. Of those, six strategic buyers and eight financial buyers had visited a “data room” as of Wednesday afternoon to review confidential financial documents.
Relativity suitors who sign non-disclosure agreements have access to 40,000 pages of documents, Blackstone reported. Non-disclosure agreements for another 16 interested parties remain in process, the report says. The interested parties can bid on some or all of the company, which funded films including “Talladega Nights” and “The Fighter.”
The senior lenders who are driving the bankruptcy auction have made a “stalking horse” bid of $250 million. But some independent financial analysts have questioned whether the company founded by Ryan Kavanaugh in 2004 is worth even that “floor” bid.
The financial firms have set Sept. 25 as the deadline for bids, with the auction to follow six days later and a court hearing to confirm the outcome on Oct. 5.
The terms of the auction will be the subject of a hearing before U.S. Bankruptcy Judge Michael Wiles on Tuesday.