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Relativity is postponing the release of its next film, Masterminds, from Aug. 19 to Oct. 9.
The company issued a statement today saying it is postponing the film’s opening “to allow the company to focus on its recapitalization and give this film the proper attention and support it deserves.”
Directed by Jared Hess, Masterminds stars Zach Galifianakis, Owen Wilson and Kristen Wiig in a comedy about a bank heist.
The embattled Relativity is in the midst of finalizing a deal with Toronto-based Catalyst Capital Group, which is acquiring 100 percent of Relativity’s senior secured debt valued at about $150 million, according to a source familiar with the negotiations. The private equity firm, which has showbiz investments including Imax and Canwest (Canada’s largest media company), has negotiated a deal to invest $170 million of equity into the studio, which will give Catalyst an undisclosed equity stake in the company and provide Relativity with the increased financial flexibility it was seeking for long-term growth.
Under the terms of the deal, Catalyst has agreed to amend and extend the senior secured debt for a one-year term. Catalyst also will gain a seat on Relativity’s board of directors. Ryan Kavanaugh retains control of Relativity and will remain CEO and chairman of the board.
The source said Relativity will use the time and money to restructure the studio, which is said to carry an overhead too big for its business model, which focuses on films that earn less than $100 million worldwide at the box office, so-called singles and doubles.
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