In light of Friday’s delayed, second bankruptcy hearing for Relativity Media, Ryan Kavanaugh’s studio is requesting a new timeline for the proposed sale of its film, TV and fashion assets.
The company is working in concert with its stalking horse bidder — Anchorage Capital, Falcon Investments and Luxor Captial — to resolve more than 16 objections from unsecured creditors and clear the path for an expedited sale on Oct. 1.
“Relativity and its advisors will work to resolve the objections raised prior to today’s hearing. Relativity, along with certain lenders who are serving as the Stalking Horse Bidder, proposed to the Court a revised sale timeline,” the statement said.
The suggested process reads as follows:
Bids Due: Sept. 25 (was Sept. 11)
Notification of Qualified Bids: September 28 (was September 14)
Auction: Oct. 1 (was Sept. 16)
Proposed Hearing to Consider Approval of Sale: Oct. 5 (was Sept. 21)
Closing of Sale: Oct. 20 (was Oct. 2)
Relativity will await approval as creditors have been given an almost two-week extension on the sale process approval, an adjournment U.S. Bankruptcy Court Judge Michael Wiles granted Friday morning in New York. Wiles expressed concern about the timeline presented at the initial July 31 hearing.
Another $2.5 million loan (known as debtor-in-possession or DIP financing) for the studio to use in operational costs was also approved. The company had expected $10.5 million today, one individual with knowledge of the situation told TheWrap.