A U.S Bankruptcy Court has approved the sale of Relativity Media to UltraV Holdings, marking another new beginning for the independent studio as it emerges from its second bankruptcy in three years.
Relativity resolved a long-running dispute with Netflix over a lucrative licensing contract earlier this month, clearing the way for the sale. It also reached an agreement with its unsecured creditors, removing another significant obstacle to the planned sale.
“Court approval of the sale today ends four difficult years for Relativity and marks a new beginning for the company,” said Colin Adams, Relativity’s chief restructuring officer. “Relativity’s administrative and priority creditors will be paid in full and unsecured creditors, including creditors from prior cases, will see meaningful recoveries, funded in part by the company’s successful partnership with Netflix.”
UltraV Holdings is a joint venture of Sound Point Capital Management, a New York asset-management firm with $17 billion of assets under management,...
Relativity resolved a long-running dispute with Netflix over a lucrative licensing contract earlier this month, clearing the way for the sale. It also reached an agreement with its unsecured creditors, removing another significant obstacle to the planned sale.
“Court approval of the sale today ends four difficult years for Relativity and marks a new beginning for the company,” said Colin Adams, Relativity’s chief restructuring officer. “Relativity’s administrative and priority creditors will be paid in full and unsecured creditors, including creditors from prior cases, will see meaningful recoveries, funded in part by the company’s successful partnership with Netflix.”
UltraV Holdings is a joint venture of Sound Point Capital Management, a New York asset-management firm with $17 billion of assets under management,...
- 8/16/2018
- by Dawn C. Chmielewski
- Deadline Film + TV
Relativity Media said on Thursday that a bankruptcy court has approved the sale of the beleaguered film studio to the UltraV Group.
“Court approval of the sale today ends four difficult years for Relativity and marks a new beginning for the company,” said Relativity’s chief restructuring officer Colin Adams in a statement. Adams also serves as managing director at restructuring advisory firm M-iii Partners. “Relativity’s administrative and priority creditors will be paid in full and unsecured creditors, including creditors from prior cases, will see meaningful recoveries, funded in part by the company’s successful partnership with Netflix. We wish UltraV much success as they renew and grow Relativity Media.”
Also Read: Relativity Media Files for Chapter 11 Again After Racking Up $500 Million-Plus Debt in 2 Years
Relativity filed for Chapter 11 bankruptcy for a second time in May and had an agreement to sell to all of its assets to UltraV...
“Court approval of the sale today ends four difficult years for Relativity and marks a new beginning for the company,” said Relativity’s chief restructuring officer Colin Adams in a statement. Adams also serves as managing director at restructuring advisory firm M-iii Partners. “Relativity’s administrative and priority creditors will be paid in full and unsecured creditors, including creditors from prior cases, will see meaningful recoveries, funded in part by the company’s successful partnership with Netflix. We wish UltraV much success as they renew and grow Relativity Media.”
Also Read: Relativity Media Files for Chapter 11 Again After Racking Up $500 Million-Plus Debt in 2 Years
Relativity filed for Chapter 11 bankruptcy for a second time in May and had an agreement to sell to all of its assets to UltraV...
- 8/16/2018
- by Trey Williams
- The Wrap
A judge on Thursday approved the sale of Relativity Media to UltraV Holdings, an investor group that is seeking a fresh start for the twice-bankrupt studio.
Relativity declared bankruptcy in May as it sought to shed debt in advance of a sale to UltraV, its largest secured creditor. UltraV held $73 million of Relativity’s secured debt, of which it bid $40 million to acquire the company. No other bidders came forward to challenge the sale.
The court approval follows settlements with Netflix and the committee of unsecured creditors, both of which had raised objections earlier in the process.
“Court approval of the sale today ends four difficult years for Relativity and marks a new beginning for the company,” Colin Adams, the company’s chief restructuring officer, said in a statement. “Relativity’s administrative and priority creditors will be paid in full and unsecured creditors, including creditors from prior cases, will see meaningful recoveries,...
Relativity declared bankruptcy in May as it sought to shed debt in advance of a sale to UltraV, its largest secured creditor. UltraV held $73 million of Relativity’s secured debt, of which it bid $40 million to acquire the company. No other bidders came forward to challenge the sale.
The court approval follows settlements with Netflix and the committee of unsecured creditors, both of which had raised objections earlier in the process.
“Court approval of the sale today ends four difficult years for Relativity and marks a new beginning for the company,” Colin Adams, the company’s chief restructuring officer, said in a statement. “Relativity’s administrative and priority creditors will be paid in full and unsecured creditors, including creditors from prior cases, will see meaningful recoveries,...
- 8/16/2018
- by Gene Maddaus
- Variety Film + TV
Despite an attempted rebound, Relativity Media is filing for Chapter 11 bankruptcy again.
The studio filed in U.S. bankruptcy court on Thursday after announcing that it’s entered an agreement with UltraV Holdings — a joint venture of funds managed by Sound Point Capital Management and Rmrm Holdings — to sell the firm all of its assets.
Relativity founder Ryan Kavanaugh said in a statement that the company “faced the significant challenge of a complicated capital structure and an evolving industry.”
The cost of the acquisition wasn’t announced, but the sale isn’t a done deal yet.
Also Read: Ryan Kavanaugh Clocks Victory in Lingering Lawsuit From Relativity Bankruptcy
Sound Point Capital Management, one half of the UltraV joint venture, is a New York-based asset management firm with approximately $17 billion of assets under management. And partnering firm Rmrm is led by David Robbins, former Chairman of Bally Technologies, veteran media industry advisor Lex Miron, and Larry Robbins, a seasoned media industry executive.
“We are very excited to acquire the assets of Relativity Media, and we believe there are numerous opportunities to reinvigorate and expand the business,” Miron said in a statement. “We have a strong development slate and are looking forward to bringing these films to audiences through our distribution partnerships, including through our agreement with Netflix. We are committed to putting the necessary resources into the business so that we can attract and retain new talent, create outstanding original film, television and digital content and distribute that content across multiple platforms.”
UltraV and Relativity hope to have the deal finalized within 45-to-60 days, but they will have to wait for approval from the bankruptcy court.
Also Read: Broadway Producer Ups Bid for Weinstein Co. After Creditors Push to Revisit Offer
The court will have to go through the standard bankruptcy processes and, if other potential buyers come forward, hold an auction.
In its filing with the court, Relativity said it had somewhere between $500 million and $1 billion in debt, compared with $10 million-to-$50 million in assets.
If UltraV secures the acquisition for Relativity it said it intends to provide enough capital for Relativity to resume its operations and continue to development projects and distribute them through existing and future platforms, including Netflix, with which the companies said Relativity still has a distribution agreement.
That output deal is over at the end of 2018.
Also Read: 'Amityville Horror' Rights Owners Say Weinstein Co.'s Option on Future Films Has Lapsed
“Our simple message to the industry is that Relativity Media is open for business and we look forward to demonstrating that we intend to operate a substantial and well financed entertainment company with strong and stable leadership,” Robbins. “We recognize that Relativity Media has had its fair share of challenges during the past several years, and that we need to rebuild trust and confidence in the business. It is our full intention and commitment to put those past chapters behind us and resume the business of creating and distributing outstanding content. We are confident that we have the collective industry expertise, relationships and, perhaps most importantly, the financial resources to fulfill that commitment and build a successful and sustainable business.
“UltraV will now be focused on completing the sale process as expeditiously as possible and ensuring that once the transaction is finalized Relativity Media can hit the ground running with appropriate financial backing and a strong leadership team,” Robbins continued.
Pamela Chelin contributed to this reporting
Read original story Relativity Media Files for Chapter 11 Again After Racking Up $500 Million-Plus Debt in 2 Years At TheWrap...
The studio filed in U.S. bankruptcy court on Thursday after announcing that it’s entered an agreement with UltraV Holdings — a joint venture of funds managed by Sound Point Capital Management and Rmrm Holdings — to sell the firm all of its assets.
Relativity founder Ryan Kavanaugh said in a statement that the company “faced the significant challenge of a complicated capital structure and an evolving industry.”
The cost of the acquisition wasn’t announced, but the sale isn’t a done deal yet.
Also Read: Ryan Kavanaugh Clocks Victory in Lingering Lawsuit From Relativity Bankruptcy
Sound Point Capital Management, one half of the UltraV joint venture, is a New York-based asset management firm with approximately $17 billion of assets under management. And partnering firm Rmrm is led by David Robbins, former Chairman of Bally Technologies, veteran media industry advisor Lex Miron, and Larry Robbins, a seasoned media industry executive.
“We are very excited to acquire the assets of Relativity Media, and we believe there are numerous opportunities to reinvigorate and expand the business,” Miron said in a statement. “We have a strong development slate and are looking forward to bringing these films to audiences through our distribution partnerships, including through our agreement with Netflix. We are committed to putting the necessary resources into the business so that we can attract and retain new talent, create outstanding original film, television and digital content and distribute that content across multiple platforms.”
UltraV and Relativity hope to have the deal finalized within 45-to-60 days, but they will have to wait for approval from the bankruptcy court.
Also Read: Broadway Producer Ups Bid for Weinstein Co. After Creditors Push to Revisit Offer
The court will have to go through the standard bankruptcy processes and, if other potential buyers come forward, hold an auction.
In its filing with the court, Relativity said it had somewhere between $500 million and $1 billion in debt, compared with $10 million-to-$50 million in assets.
If UltraV secures the acquisition for Relativity it said it intends to provide enough capital for Relativity to resume its operations and continue to development projects and distribute them through existing and future platforms, including Netflix, with which the companies said Relativity still has a distribution agreement.
That output deal is over at the end of 2018.
Also Read: 'Amityville Horror' Rights Owners Say Weinstein Co.'s Option on Future Films Has Lapsed
“Our simple message to the industry is that Relativity Media is open for business and we look forward to demonstrating that we intend to operate a substantial and well financed entertainment company with strong and stable leadership,” Robbins. “We recognize that Relativity Media has had its fair share of challenges during the past several years, and that we need to rebuild trust and confidence in the business. It is our full intention and commitment to put those past chapters behind us and resume the business of creating and distributing outstanding content. We are confident that we have the collective industry expertise, relationships and, perhaps most importantly, the financial resources to fulfill that commitment and build a successful and sustainable business.
“UltraV will now be focused on completing the sale process as expeditiously as possible and ensuring that once the transaction is finalized Relativity Media can hit the ground running with appropriate financial backing and a strong leadership team,” Robbins continued.
Pamela Chelin contributed to this reporting
Read original story Relativity Media Files for Chapter 11 Again After Racking Up $500 Million-Plus Debt in 2 Years At TheWrap...
- 5/3/2018
- by Trey Williams
- The Wrap
Updated 1:13 Pm: Exclusive: Aspects of Relativity’s first bankruptcy are still before the courts, but as expected the company today filed for Chapter 11 with a promise that “funds will be available for distribution” to its approximately 200 unsecured creditors.
As Deadline laid out in our exclusive this morning on the once high-flying Ryan Kavanaugh-run company’s intention to sell its assets to a New York investor group, the voluntary bankruptcy petition is intended to pave the way for new owners UltraV to take over later this year
After all the drama, huffing and puffing of Relativity’s crash in 2015 and subsequent battles with Netflix and others, the 10-page filing made Thursday in U.S. Bankruptcy Court for the Southern District of New York was a relatively low-key affair. However, the paperwork (read it here) did reveal that Relativity Media and Relativity Studios has between $10 million-$50 million in assets up...
As Deadline laid out in our exclusive this morning on the once high-flying Ryan Kavanaugh-run company’s intention to sell its assets to a New York investor group, the voluntary bankruptcy petition is intended to pave the way for new owners UltraV to take over later this year
After all the drama, huffing and puffing of Relativity’s crash in 2015 and subsequent battles with Netflix and others, the 10-page filing made Thursday in U.S. Bankruptcy Court for the Southern District of New York was a relatively low-key affair. However, the paperwork (read it here) did reveal that Relativity Media and Relativity Studios has between $10 million-$50 million in assets up...
- 5/3/2018
- by Andreas Wiseman and Dominic Patten
- Deadline Film + TV
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