Relativity Media spirals into bankruptcy; on the hunt for a buyer

Deadline reported that Relativity relinquished its share of the film’s distribution rights before bankruptcy proceedings began, and that its backers now hope to release it early next year. They still plan to release the comedy “Masterminds“, starring Kristen Wiig, Zach Galifianakis, Owen Wilson, and Jason Sudeikis, which they recently pushed from a summer release to October 9th. Kavanaugh, 40, has not spoken publicly about his company in recent days and Relativity has issued no statements about what will come next.

However, the company said it eliminated 75 full-time staff and it plans to wind down its fashion division, M3/Relativity.

Over the last several years, Relativity Media has produced and released some of Hollywood’s more adventurous genre films, including Steven Soderbergh’s Haywire, the Bradley Cooper brain-drug thriller Limitless, and the music melodrama Beyond the Lights. “With over $350 million in outstanding matured secured debt and unable to finalize any further financing, the Debtors determined it was in their best interests to file for bankruptcy protection”. Job cuts are expected across many facets of the company including its digital and education sectors. To this end, Relativity has entered into an agreement with RM Bidder LLC, an entity formed and owned by certain of the Company’s prepetition lenders, which will be filed with the Court later today. Relativity Media, the struggling “mini major” Hollywood studio behind movies such as “Immortals” and “Mirror Mirror”, has filed for Chapter 11 bankruptcy protection. “The actions we’re saying as we speak will shield our useful franchise and permit us to emerge as a stronger, extra targeted firm”.

It’s been reported that the company is as much as $320 million in debt. We appreciate the dedication of our employees, whose hard work is critical to our success and the future of our company. “We thought it would make sense for both parties to get the film back and move it forward with someone else”.

The company also made MTV show Catfish, and said it would press ahead with a number of worldwide versions of the show as well as a sequel called Truce.

Kavanaugh is to stay CEO and different prime executives are to stay of their positions.

Relativity will continue its business operations as the Company completes its restructuring.