Relativity Bankruptcy: NBCU Makes Surprise Appearance on Creditor Committee

The media giant wasn't listed as an unsecured creditor in the bankruptcy petition.
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Relativity CEO Ryan Kavanaugh

On Friday, a United States Trustee announced the appointment of seven unsecured creditors to an official committee that will be closely following the Chapter 11 bankruptcy of Relativity.

Carat USA, the media buying firm with a disputed claim of $36.8 million, is of course on the list, but the biggest surprise is the appearance of NBCUniversal, which wasn't listed as an unsecured creditor in the original petition.

NBCU hasn't yet answered an inquiry into what it feels it is owed. The possibilities range from advertising debt to fallout from an arbitration between Universal Studios and Elliot Management, which The Hollywood Reporter revealed in 2013. (Elliot was one of Relativity's earliest backers and Universal was the recipient of a Relativity fund that went into slate financing.)

The debt NBCU feels it is owed should be made clear soon enough, though it's likely to be at least somewhat significant; the official committee of unsecured creditors is usually comprised of the biggest creditors who choose to participate.

The other committee members are Cinedigm Corp., Technicolor, Allied Advertising, Comen VFX and Create Advertising Group.

 

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