Relativity Media’s sale at auction was underway in New York on Thursday, as bidders have come to the table for some or all of the assets of Ryan Kavanaugh‘s bankrupt mini-studio.
A bid from the studio’s senior lenders — Anchorage Capital, Falcon Investments and Luxor Capital — was established in August at $250 million. The so-called stalking horse group is confident its bid for the entirety of Relativity’s assets will sway U.S. Bankruptcy Court Judge Michael Wiles.
‘They are optimistic,” an insider close to the group told TheWrap. “The confidence in this bid is evident, it’s remained throughout the entire process.”
There are no indications that anyone else has entered a bid for the entire company by the Sept. 29 deadline, which was extended from Sept. 25. And only a small number of bids were submitted for portions of Kavanaugh’s company, particularly Thomas Forman’s successful TV division.
The $250 million from the stalking horse group was considered a low-ball figure when it was entered in August, though it has not generated any competing bids — or combinations of bids — that exceed that figure.
At the time of the company’s Chapter 11 filing on July 30, Relativity reported $560 million in assets and nearly $1.2 billion in liabilities.