Relativity Bankruptcy: Reorgnization Plan Calls for Release of Seven Movies
If the judge approves the proposal, the company is looking to finally distribute such films as the Zach Galifianakis action comedy 'Masterminds' and the Halle Berry thriller, 'Kidnap.'
As it regroups with the goal of emerging from bankruptcy, Ryan Kavanaugh’s Relativity Media filed a reorganization plan with the U.S. Bankruptcy Court in New York today that it said would allow the company to release seven films that have already completed principal photography over the next 18 months.
Saying that it is working to secure $100 million in new capital to fund the plan and that the movies’ release will be funded in part by a new $250 million revolving credit facility, the company, which filed for Chapter 11 bankruptcy back in July, set forth a release slate that includes such lingering-in-limbo titles as Masterminds, the action-comedy starring Zach Galifiankis and Kristen Wiig, and the action-thriller, Kidnap, starring Halle Berry. Its other titles awaiting release include the supernatural thriller, Before I Wake, with Kate Bosworth and Thomas Jane; D.J. Caruso’s The Disappointments Room, with Kate Beckinsale headlining; a crime thriller Shot Caller, starring Game of Thrones’ Nikolaj Coster-Waldau; Jim Sheradin’s Secret Scripture, starring Rooney Mara and Vanessa Redgrave; and Solace, with a cast that includes Colin Farrell and Anthony Hopkins.
Relativity, which has been on hold for the past few recent months, also said it has 25 film projects in active development.
While the plan must be approved by Judge Michael Wiles, a Relativity spokesman issued a statement saying, “Relativity today took a significant step forward in its chapter 11 proceedings, and filed a plan of reorganization with the court. Upon emergence in late January, the company’s $35 million DIP loan will be paid in full, its debt load will be reduced to $60 million or less, and it expects to receive up to $100 million in new equity. Relativity plans to release seven films funded in part by a new $250 million Ultimates/P&A facility.” The statement cautioned, though, that “as is often the case in complex chapter 11 cases, the plan may evolve as the parties refine negotiations.”
According to Relativity, Jim Cantelupe of Summit Trail Advisors is currently working with the company’s debtors “to raise up to $100 million of new capital to fund the plan, which funds are to be in escrow on or before Dec. 21, 2015.” The company said its existing DIP (Debtor-in-Possession) financing, which has been reduced to $35 million, will be paid in full upon emergence from bankruptcy, and that it’s prepartition debt will be converted into equity with a maximum of $60 million remaining outstanding.
Although Relativity auctioned off much of its TV business for $125 million, it has plans to continue in scripted TV and hopes to produce one-to-two scripted shows per year, based on existing IP that it owns and original concepts.