Relativity Media files for bankruptcy protection

31 Jul 2015 | Author: | No comments yet »

Hollywood’s Relativity Media files for bankruptcy protection.

Relativity Media LLC’s chapter 11 filing Thursday capped off weeks of intense speculation as to when the troubled film and television studio would turn to the bankruptcy court for relief from a heavy debt load, box-office flops and a bitter legal battle.LOS ANGELES (AP) — Relativity Media, the struggling “mini major” Hollywood studio behind movies such as “Immortals” and “Mirror Mirror,” has filed for Chapter 11 bankruptcy protection. The company owes more than $300 million to creditors and the filing comes after a spate of lawsuits between it and an entity called RKA that had lent it money to market movies.

July 15: Lender RKA Film Financing LLC sues over $7.5 million it says it’s owed by Relativity, a lawsuit that founder and Chief Executive Ryan Kavanaugh calls “frivolous.” July 16: Some of Relativity’s existing lenders, including Anchorage Capital Group LLC, shore up their positions by buying $130 million of Relativity debt from Catalyst. July 20: Relativity pulls two films set for a fall release. “Kidnap,” starring Halle Barry, will come out in February instead of October, while the Sept. 30 release for documentary “Hillsong—Let Hope Rise” is canceled with no new date set. Relativity’s countersuit against RKA disputes the lender’s claims that it breached the terms of its loan and accuses the lender of trying to sabotage its refinancing efforts. The company gives up rights to distribute “Jane Got a Gun,” a Western starring Natalie Portman set for release in September, while an upcoming biography of Olympian Jesse Owens is reportedly yanked from Relativity’s grasp.

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