1:13pm PT by Eriq Gardner
Relativity Says Creditors Have Voted to Accept Chapter 11 Reorg Plan
Relativity Media is cheering the outcome of a vote by unsecured creditors to accept the Ryan Kavanaugh studio's plan of reorganization. The company hopes that it will lead the way to a judge's approval on Feb. 1 and prime its way out of Chapter 11 bankruptcy.
The company didn't detail the specific vote tally, but did announce that an "overwhelming percentage" had voted to accept.
Relativity Studios' plan calls for the 2016 release of films including The Disappointments Room, Before I Wake, Kidnap, Masterminds and Strangers 2.
News of the thumbs-up follows word from Relativity that it has secured more than $100 million in exit financing from Macquarie Bank, hedge-fund magnate Joseph Nicholas, Atorus Investment Management, TomorrowVentures, Carat Global and VII Peaks Capital.
Relativity is still dealing with several objections to plan.
Netflix says it doesn't have assurance that if Relativity emerges from bankruptcy, the studio can meet commitments to deliver a minimum number of films to Netflix and ensure exclusivity. The Weinstein Company has questioned the rejection of a settlement agreement concerning The Crow, which Relativity has aimed to reboot in March. Other objectors include Paramount, Discovery, Colbeck Capital, CIT Bank and Brett Ratner, who is upset over not participating or not being given financial participation on MTV's Catfish.
But for all of these issues, Relativity has put some of its problems in the rear-view mirror. For example, at a hearing on Tuesday, there was resolution on claims concerning Manchester, a subsidiary of Paul Singer's hedge fund, Elliott Management, an early backer of Relativity. As part of a settlement, Manchester won't be objecting to the reorganization plan either.