7:38am PT by Eriq Gardner
Relativity Bankruptcy: Financier Seeks to Sell 'Masterminds,' 'Kidnap' to Other Film Studios
RKA Film Financing, the firm that put up $85 million to fund Relativity Media's advertising on upcoming films — including Masterminds, Somnia, Disappointments Room and Kidnap — is now seeking to seize those films and sell them off to another studio for distribution.
RKA accused Kavanaugh of misusing P&A funds while Kavanaugh hit back with claims the financier had concocted a media campaign in order to win equity and was interfering with relations with other lenders. Kavanaugh also demanded sanctions.
The battleground has now shifted to a New York bankruptcy court, where RKA told a judge late Tuesday it has been dismayed by news that Masterminds — the comedy starring Zach Galifianakis, Kristen Wiig and Owen Wilson — has been postponed "indefinitely" and that Halle Berry's thriller Kidnap won't be released until next year. RKA's attorneys at Latham & Watkins say that Relativity is under obligation to not borrow P&A funds past Sept. 30 and that the P&A facility is secured by the intellectual property and receipts of such films.
In search for clarity, they "have been met with little more than vague response and obfuscation," according to RKA's court filing, and so the financier is now pushing for an order that grants it protection over its interests.
Specifically, RKA wants relief from an automatic stay that halts the firm's ability to exercise legal rights and the ability "to enter the Debtors’ premises and take possession of the Unreleased Film Collateral," "the right to search for and contract with another film studio to have the Unreleased Film Collateral released domestically" and "the right to otherwise manage, sell, transfer or dispose of the Unreleased Film Collateral in the manner RKA deems appropriate."
The Hollywood Reporter will provide updates on this motion.