You will be redirected back to your article in seconds

Open Road Bankruptcy Sale to Raven Capital Approved by Judge

A Delaware bankruptcy judge on Wednesday approved the $87.5 million sale of Open Road Films to Raven Capital Management.

The sale is expected to close on Friday. Judge Laurie Silverstein approved the deal after hearing that various objections had been resolved. Raven Capital submitted the only bid for the company.

Open Road declared bankruptcy in September after parent company Tang Media Partners failed to raise fresh capital from its Chinese backers. TMP had acquired the U.S. distributor only a year earlier, and sought to combine it with foreign sales firm IM Global to create a worldwide studio.

The company ramped up hiring in early 2018. But it endured a series of flops, including “A.X.L.” and “Hotel Artemis,” and pulled the Johnny Depp film “City of Lies” from its release schedule in August. On the date of its bankruptcy, the company declared $140 million in secured and unsecured debt.

Open Road was launched in 2011 as a joint venture of Regal Entertainment and AMC Entertainment. The distributor released 45 films, including “Spotlight,” which won the Academy Award for best picture in 2016.

Producers of several films filed objections in the bankruptcy court, arguing that the rights to distribute the films should not be transferred to Raven Capital until past due payments are received. The buyers agreed to pay $320,000 to the producers of “Spotlight” to assume the film’s distribution agreement. The producers had initially sought $1.5 million. The producers of “Chef,” the 2014 film directed by Jon Favreau, claimed they were owed $7.5 million, and ultimately settled for $600,000.

Raven Capital Management previously partnered with Ambi Group to acquire most of the 400-title library of Exclusive Media.

More Biz

  • Doug Davis and Jodie ShihadehVariety Power

    Jodie Shihadeh Named Partner at The Davis Firm

    Jodie Shihadeh has been named Partner at The Davis Firm, PLLC. She joined the firm in 2011 and rose from associate to Managing Attorney and now partner. She graduated from Boston College and received her law degree from Fordham University School of Law in 2011. While still in law school she interned in the Business [...]

  • Peak TV Saturation TV Placeholder

    Nickelodeon Alum Keith Dawkins Sets Kidvid Partnership With Believe Media Group

    Former Nickelodeon executive Keith Dawkins has partnered with Believe Media Group to develop children’s programming. Dawkins will partner with Believe under his newly formed Rock Hill Media Ventures, which aims to advise companies in media, entertainment and sports on working with diverse and emerging talent. Dawkins previously spent 17 years at Viacom, most of which [...]

  • CBS Studios Exterior

    CBS Credit Union Manager Pleads Guilty to $40 Million Fraud

    The manager of a credit union for CBS employees pleaded guilty in Los Angeles federal court on Monday to a $40 million embezzlement scheme. Edward Rostohar, 62, was arrested in March after the scheme began to unravel. According to prosecutors, he admitted to stealing money from the bank for the last 20 years. Rostohar is [...]

  • Norman Reedus as Daryl Dixon - The

    CAA's Packaging Fee Becomes Flashpoint in 'Walking Dead' Litigation

    The issue that is at the heart of the WGA’s present standoff with talent agencies has flared up as a source of tension in the litigation between AMC Networks and Frank Darabont and CAA over profit participation on “The Walking Dead.” The practice of talent agencies receiving packaging fees for helping to assemble the creative [...]

  • Sony Music to Deliver ‘Real Time’

    Sony Music to Deliver ‘Real Time’ Data, Royalty Payments to Artists

    Sony Music today announced two new payment features for its artists — “Real Time Royalties” and “Cash Out” — through its artist portal beginning this fall. 

A memo sent to artists Monday morning and obtained by Variety says  the initiatives will “allow our artists and royalty participants to view and withdraw earnings faster than ever [...]

  • Whitney Houston

    Whitney Houston Estate Plans Hologram Tour, Album, Musical

    In the seven years since Whitney Houston’s death, there has been relatively little of the asset-exploitation that usually follows the passing of a music icon, apart from a smattering of previously unreleased recordings, a pair of harrowing documentaries and a lot of unflattering press. But according to an article in the New York Times, the [...]

  • rocketman-elton-john-costume

    Elton John Biopic 'Rocketman' Taps Lucky Brand Collaboration as Part of Promo Push

    Paramount has set a May 28 release date for its Elton John-inspired clothing collection with retailer Lucky Brand, which celebrates the performer’s iconic style and new biopic, “Rocketman” (see tickets and showtimes here). The limited-edition collaboration arrives in stores three days before the film hits theaters, though it’s available for purchase right now on LuckyBrand.com. [...]

More From Our Brands

Access exclusive content