Relativity Says It's Close to an Overall Deal With Lenders, New Equity Partners
A studio spokesperson added: "Relativity is not exploring the sale of any of our films."
With a June 30 debt payment deadline just days away, Relativity says it is close to a deal that would bring in new equity partners.
A Relativity spokesperson said: “We are close to concluding an overall deal with our lenders and new equity partners which will position the company for long-term growth. There is no 10-day period, and Relativity is not exploring the sale of any of our films. We are highly confident in the company’s future."
Several recent stories have reported that Relativity was looking to unload domestic distribution rights to The Crow and Hunter Killer in an effort to raise cash. Another report stated that CEO Ryan Kavanaugh had received a 10-day extension to come up with the debt payment, which a source pegs at $120 million.
Thursday's statement comes 10 days after Kavanaugh told staffers that he had raised some $300 million from a consortium of investors to keep the mini-studio from defaulting on payments that are due at the end of June.
A source says the deal would give the embattled studio a one-year extension on 70 percent of its debt. The other 30 percent would be bought out by Relativity with the money coming in from the new equity partners. Colbeck Partners, which has feuded with Relativity in recent months and lost two Relativity board seats, represents a small portion of that 30 percent stake that would be bought out.