Relativity Media Exiting Chapter 11
Relativity Media has been approved by the court to emerge from bankruptcy. After filing one of Hollywood’s biggest bankruptcies last July, Ryan Kavanaugh’s company has won approval to exit Chapter 11.
In February, US Bankruptcy Judge Michael Wiles approved a reorganization plan for the film studio. At the time, the judge made it conditional on Relativity finalizing paperwork on exit financing.
Recently, the studio changed the source of its financing and revealed that Kevin Spacey bowed out of running the studio, but Friday, the judge ruled that the company has satisfied the conditions of its bankruptcy exit.
Relativity racked up more than $1-B in debt to its roughly $500-M in assets before it filed for bankruptcy. The Chapter 11 filing left a number of films in limbo.
There will be a “Creative Advisory Board” for Relativity, consisting of Messrs Brunetti, Kavanaugh and Joe Nicholas, a hedge-fund manager who has invested in the company during the Chapter filing’s frame.
The company said Friday that it secured $400-M in equity film financing from Michael Wexler and Tove Christensen’s Maple Leaf Films. Maple Leaf will finance 75% of future Relativity films on an annual basis for the next 5 years.
Maple Leaf Films, a Canadian firm, is part of the Maple Leaf Capital Group of companies focusing on hedge funds, real estate and film finances, with offices in London, Hong Kong and Los Angeles.
Maple Leaf entered film finance in Y 2005, providing equity, debt or both for small to mid-size Indie films.
Have a terrific weekend.
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Paul Ebeling
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