9:38am PT by Eriq Gardner
Relativity Media Says It Has More Than $100 Million in New Financing
Relativity Media has announced more than $100 million in financing commitments from current investors, as well as new ones. The Ryan Kavanaugh studio hopes to use the money to emerge from the Chapter 11 process, which began last July in one of the largest bankruptcies in Hollywood history.
On Feb. 1, a judge will consider whether to approve Kavanaugh's plan of reorganization. The need for exit financing was one of the last major steps on that road.
Kavanaugh himself, as well as past Relativity investors Macquarie Bank and hedge fund magnate Joseph Nicholas, will be putting up money. So will Carey Metz, chief investment officer of Atorus Investment Management, and TomorrowVentures, the venture fund of Google chief Eric Schmidt. Additionally, Carat Global and VII Peaks Capital are also coming along to inject money into the embattled studio responsible for such films as Immortals, Limitless and The Fighter.
Carat Global has agreed to extend credit to Relativity for P&A on such coming films as The Disappointments Room, Before I Wake, Kidnap, Masterminds and Strangers 2. The money figures to replace funds from RKA Film Financing, which has taken Kavanaugh to court with allegations of fraud.
VII Peaks Capital was previously set to deliver money at the time of Relativity's sale of its TV division, before a dispute erupted over the conditions around its commitment. The announcement that VII Peaks has joined the new investors figures to be resolution to that controversy.
Relativity, which recently appointed Kevin Spacey and Dana Brunetti to lead film and television operations, also says the financing is in addition to the post-emergence ultimates facility, an asset-backed facility being syndicated by GHL & Company and Aperture Media Partners.
In a statement Kavanaugh comments, "With the total financing commitments now successfully in place, we remain focused on emerging from chapter 11 and moving forward with our robust slate of films and our continued evolution as a 360 degree content engine."