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Motion Picture & Television Fund Also Wants Money From Relativity

Among the many obligations bankrupt Relativity Media has failed to meet is to the Motion Picture & Television Fund, the charity that provides health care, social services and a home for aging industry veterans in Woodland Hills, Calif.

The entertainment company founded by Ryan Kavanaugh failed to make a promised $75,000 payment to the MPTF in August and the nonprofit wants the money paid through the bankruptcy process, according to a court filing on Monday.

In a motion in U.S. Bankruptcy Court in New York, the fund’s lawyers say Relativity missed the payment on Aug. 30. They note that Relativity would like to pass on its contractual obligation for the payment to a presumed new owner of the company, presuming the company is sold at auction Oct. 1. But the lawyers for the nonprofit say they oppose the contract being passed on without the $75,000 payment being guaranteed, along with another $75,000 due in November.

The motion by lawyers from the firm of Levene, Neale, Bender, Yoo & Brill says Relativity pledged $600,000 to MPTF over two years. The failure to pay a quarterly installment came after the company filed for bankruptcy on July 30.

The filing indicates that Kavanaugh’s company got benefits from its relationship with the charity. “The Agreement provides Relativity Media important access, influence, and goodwill for the benefit of its enterprise in the entertainment industry,” the filing states. As one of six top-tier “presenting sponsors” in the charity’s annual fundraiser, Relativity got “sponsorship category exclusivity, logo recognition, valuable press, and published recognition in multiple sources,” the motion states. Relativity was in good company. Also receiving “presenting” status for their own donations were Delta Air Lines, Dodge, L’Oreal USA, Target and the Hollywood Reporter.

The motion picture fund’s lawyers argue that a $250 million stalking horse bid for Relativity will not necessarily produce the funds needed to cover the August or November payments to MPTF, totaling $150,000. It asks for the “cure” amount in the bankruptcy case to be increased to at least $75,000, to cover the August payment, with the same amount pledged for November.

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