A hearing on Tuesday to be able to approve a $3 million loan agreement with a hedge fund unit billionaire Paul Singer’s Elliott Management was delayed because of insufficient paperwork.Bankruptcy court judge Michael Wiles postponed the hearing until Monday, to give lawyers the opportunity to amend the contract.
Fulfillment Fund To Honor Ryan Kavanaugh
The absence of the company resulted in an incongruous hearing, especially in light of Relativity’s announcement on Monday, in which it claimed VII Peaks of having a past of over-promising and under-delivering.”We are confident that the next step they take is to invent a falsehood to hide the reality that they are unable to stop closing,” the Ryan Kavanaugh-run studio said.The independent studio behind films like “Limitless” and “The Fighter,” was granted Chapter 11 on Thursday -just 10 months since The Post first reported the Ryan Kavanaugh-led company was getting into financial difficulties with its debt repayments.
Kavanaugh might also make his own bid to get control back on the firm he created.
Industry watchers in the media industry have suggested another option: Netflix. The streaming video company is increasing its original content, such as “Orange Is the New Black.”A number of the biggest lenders at Relativity have come together to form an offer known as a stalking horse bid for the studio. This will begin auctions of the studio’s assets of the bankruptcy court.Bidding consortium dubbed RM Bidder LLC, is thought to include Anchorage Capital, Falcon Investments, Luxor and Burkle-backed Colbeck Capital.
“RM Bidder will serve as a starting point for a sale and auction process that will be conducted by Ryan Kavanaugh Blackstone Group and FTI Consulting,” Relativity stated in an announcement.
It has a host of creditors, including the media-buying agency Carat and is and is owed $36.8 million. The other creditors comprise Google, IMG and former Balenciaga designer Alexander Wang.Just one year ago Kavanaugh was discussing with Investment bank Jefferies to take the company public and get crucial cash.