You will be redirected back to your article in seconds

Relativity Gets Minimum Bankruptcy Bid From Its Lenders: $250 Million

It was just a little more than a year ago that supporters of Relativity Media had floated the idea that the film- and TV-maker could be valued in an initial stock offering at $6 billion to $10 billion. Now the senior lenders who have taken control of the company in bankruptcy have made a minimum bid for Relativity: $250 million.

The stalking horse offer on behalf of Anchorage Capital Group, Luxor Capital Group and Falcon Investment Advisors is meant to set a floor for the auction of the company, which the three hedge funds hope will go for considerably more. But experts who have been kicking the tires of the failed entertainment concern have told Variety that they don’t see much value in a studio that has put out a string of mostly underperforming films and failed to build a substantial movie library.

The senior investors — which, alone, are owed some $361 million — have set a Sept. 16 for an auction of the company or its pieces, with results to be reviewed at a hearing at the U.S. Bankruptcy Court in Manhattan five days later. It’s virtually certain, however, that others owed money by the company founded by Ryan Kavanaugh will seek to slow the process, in hopes of recovering some of their unpaid bills. Unsecured creditors have racked up $89.9 million in credits against Relativity. The company has a total of nearly $1.2 billion in liabilities, against assets it put at $560 million.

The minimum sales price and schedule for the auction are outlined in recent court filings by Relativity’s bankruptcy counsel at the firm of Jones Day.  The court documents also set up the following proposed scheduled:

*Sept. 3: Expression of interest by parties that want to get some or all of Relativity. Would-be owners also required to present proof of their ability to finance a deal to bankruptcy advisers at Blackstone Group.

*Sept. 11: Submission of bids.

*Sept. 14: Determination of qualified bidders.

*Sept. 16: Auction at offices of bankruptcy counsel Jones Day.

*Sept. 21: Hearing on sale at U.S. Bankruptcy Court in Manhattan.


More Film

  • Hugh Jackman Sings Happy Birthday to

    Hugh Jackman Leads Massive One-Man Show Crowd in 'Happy Birthday' for Ian McKellen

    Hugh Jackman may have had to skip Ian McKellen’s birthday party to perform his one-man show, “The Man, The Music, The Show,” but that didn’t mean he couldn’t celebrate his “X-Men” co-star’s 80th. Jackman took a moment at the Manchester Arena Saturday to lead the sold-out audience — some 50,000 strong — in a rendition [...]

  • Netflix, Shmetflix: At Cannes 2019, the

    Netflix, Shmetflix: At Cannes 2019, the Movies Needed Every Inch of the Big Screen

    In the May 24 edition of The New York Times, there was a column by Timothy Egan, entitled “The Comeback of the Century: Why the Book Endures, Even in an Era of Disposable Digital Culture,” that celebrated those things that come between two hard covers as a larger phenomenon than mere nostalgia. The column keyed [...]

  • Aladdin

    'Aladdin' Dominates International Box Office With $121 Million

    Disney’s “Aladdin” is showing plenty of worldwide drawing power with $121 million overseas for the weekend, opening in first place in nearly all international markets. The reboot of the 1992 animated classic has received strong family attendance with a significant gain on Saturday and Sunday. China leads the way with an estimated $18.7 million for [...]

  • Aladdin

    Box Office: 'Aladdin' Taking Flight With $105 Million in North America

    Disney’s live-action “Aladdin” is flying high with an estimated $105 million in North America during the four-day Memorial Day holiday weekend. It’s the sixth-highest Memorial Day weekend total ever, topping the 2011 mark of $103.4 million for “The Hangover Part II.” The top total came in 2007, when “Pirates of the Caribbean: At World’s End” [...]

  • Agustina San Martin Talks Cannes Special

    Agustina San Martin Talks Cannes Special Mention Winner ‘Monster God’

    CANNES – An exploration of the ramifications of God, “Monster God,” from Argentina’s Agustina San Martín, took a Special Mention – an effective runner’s up prize – on Saturday night at this year’s Cannes Film Festival short film competition. It’s not difficult to see why, especially when jury president Claire Denis own films’ power resists [...]

  • Atlantics

    Netflix Snags Worldwide Rights to Cannes Winners 'Atlantics,' 'I Lost My Body'

    Mati Diop’s feature directorial debut “Atlantics” and Jérémy Clapin’s animated favorite “I Lost My Body” have both been acquired by Netflix following wins at Cannes Film Festival. “Atlantics” was awarded the grand prix while “I Lost My Body” was voted the best film at the independent International Critics Week. The deals are for worldwide rights [...]

  • Stan Lee, left, and Keya Morgan

    Stan Lee's Former Business Manager Arrested on Elder Abuse Charges

    Stan Lee’s former business manager, Keya Morgan, was arrested in Arizona Saturday morning on an outstanding warrant from the Los Angeles Police Department. The LAPD’s Mike Lopez confirmed that the arrest warrant was for the following charges: one count of false imprisonment – elder adult; three counts of grand theft from elder or dependent adult, [...]

More From Our Brands

Access exclusive content