8:47am PT by Eriq Gardner
Relativity Bankruptcy: Judge Approves Sale of TV Assets
U.S. Bankruptcy Court Judge Michael Wiles has given his blessing to a $125 million bid from an investment group to purchase Relativity Media's television business.
Acting as the stalking horse bidder at an auction held on Friday in Relativity's Chapter 11, Anchorage Capital Group, Falcon Investment Advisors and Luxor Capital Group revised their original bid of $250 million for all of Relativity's assets to just $125 million for the financially healthy division that is best known for producing unscripted hits like MTV's Catfish.
The deal for the sale of Ryan Kavanaugh's Relativity Media was announced over the weekend, but details were only provided a few hours before a hearing on Monday. As such, the judge allowed an additional day for those who have made deals with Relativity to object.
Although a range of companies including Viacom and FX Networks expressed concern before the auction about the assumption of contracts and assurances that a buyer would be able to give adequate assurances of performance obligations, the proposed sale of the debtor's TV assets triggered a few objections.
IATM, the licensor on the film Act of Valor, raised an objection on the basis that the debtor estate didn't have the authority to transfer rights to a television series based on the film, but it was reserved for the next court hearing on Oct. 14.
Technicolor also raised an objection but was assured none of the film assets it has lien over were being conveyed.