With bids due on Friday for the assets of bankrupt Relativity Media, the future of Ryan Kavanaugh‘s company remains up in the air. There are literally hundreds of different scenarios in play, according to experts who anticipate competitive bidding for at least some of the studio’s divisions.
A group of Relativity’s lawyers, bankers and accountants is expected to hunker down this weekend to sort out the bids before the company must go before U.S. Bankruptcy Court Judge Michael Wiles on Monday for the next hearing, where it’s possible that bidders could be disclosed unless the studio successfully pushes for a delay.
It remains unknown whether a single buyer will purchase all of Relativity’s assets or if the company’s various divisions will be sold to multiple buyers.
As TheWrap reported Tuesday, the company expects more than 25 bids — the vast majority for Tom Forman’s TV unit, which has successfully generated hits like MTV’s “Catfish: The TV Show” and CBS’ new drama “Limitless.” The unit is expected to draw offers in the $100 million range, close to its revenues for 2014.
But none of the submissions is expected to approach the $250 million stalking-horse bid offered by a group of senior lenders — led by Anchorage Capital, Falcon Investments and Luxor Capital — for all of the company’s assets. Without competing bids for the whole company, the resolution could be complicated.
One scenario involves a mini-auction, in which Relativity would narrow down a list of suitors and begin negotiating with each, according to Steven Gubner, managing partner at the law firm Ezra Brutzkus Gubner who has been closely monitoring the Relativity sale.
It’s also possible that someone could buy out the lead investors’ stake in Relativity for roughly 90 cents on the dollar, Gubner said. Bids may include cash and non-cash assets, such as a lease, in which case the buyer would typically ask for a discount.
Relativity may also ask for more time to evaluate bidders and vet potential buyers, especially those from overseas, whose financial qualifications may be less clear, Gubner told TheWrap
The investors who hold large stakes in Relativity are eager to see a sale come to fruition quickly, as it’s costing them a small fortune to keep the company’s doors open while most business has come to a standstill.
Their agenda is to maximize value, as investors and banks typically aren’t interested in underwriting a movie star’s residual payments or to pay out advertising contracts. That said, investors could also choose to carry debt for a creditable buyer, accruing millions of dollars in interest over the next six to 12 months.
There’s also intrinsic value to Relativity’s operational talent, and several employees are believed to have golden parachutes built into their contracts, which can be acquired as individual assets.
Bids submitted in secret on Friday, though as with any bankruptcy scenario, it’s possible that details could leak sooner.
Even after the sale is completed, which is likely to happen sometime next month, the scores of Relativity creditors are likely to continue their litigation to jockey for payment — especially given the long odds against full compensation.
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.
“Committees and other creditors will still pursue the money they’re owed,” Robbin Itkin, business and entertainment restructuring partner at law firm Liner LLC, told TheWrap. “How it got to this point is the question, and why — there’s so much debt and the inability to pay it.”
Matt Donnelly contributed to this report.
51 Fall Movies on Our Radar: From 'Black Mass' to 'The Revenant' (Photos)
"Pawn Sacrifice" - Sept. 16 The movie follows chess champion Bobby Fischer (Tobey Maguire) who prepares for his game against Russian Boris Spassky (Liev Schreiber).
Bleecker Street
"Black Mass" - Sept. 18 Starring Johnny Depp, Joel Edgerton, Benedict Cumberbatch, Dakota Johnson and Corey Stoll, the film follows the true story of Whitey Bulger, one of the most notorious criminals in U.S. history.
Warner Bros.
"Everest" - Sept. 18 Mountain climbers on Mt. Everest are stuck in a severe, dangerous snowstorm in this drama starring Jake Gyllenhaal, Keira Knightley and Robin Wright.
Universal
"Maze Runner: The Scorch Trials" - Sept. 18 After escaping the Maze, the group now needs to face challenges on the open road with new obstacles.
Fox
"Sicario" - Sept. 18 An FBI agent is enlisted by an elected government task force to help in the war against drugs at the border between the U.S. and Mexico. The film stars Emily Blunt, Jon Bernthal, Josh Brolin and Benicio del Toro.
Lionsgate
"99 Homes" - Sept. 25 Andrew Garfield stars as a young father who struggles to get back his home after a recession-induced eviction.
Broad Green Pictures
"Stonewall" - Sept. 25 Jeremy Irvine stars as a young man who arrives in New York City in the late 1960s in time to experience first-hand the riots at the Stonewall Inn that kicked off the modern gay-rights movement. The film also stars Jonathan Rhys Meyers, Ron Perlman and Jonny Beauchamp.
Roadside Attraction
"The Intern" - Sept. 25 Anne Hathaway, Robert De Niro and Nat Wolff star in this touching comedy about a 70-year-old man interning at a fashion company.
Warner Bros.
"The Walk" - Sept. 30 Robert Zemeckis' 3D film follows the true story of French high-wire artist Philippe Petit (Joseph Gordon-Levitt), who attempted to walk across the Twin Towers of the World Trade Center in 1974.
Sony/Tristar
"Freeheld" - Oct. 2 In another fact-based drama set before the nationwide ruling for same-sex marriage, New Jersey cop Laurel Hester (Julianne Moore) and her domestic partner Stacie Andree (Ellen Page) struggle to secure Hester's pension benefits when she is diagnosed with terminal cancer. The movie also stars Steve Carell, Josh Charles and Michael Shannon.
Lionsgate
"The Martian" - Oct. 2 Starring Matt Damon, Kate Mara, Kristin Wiig, Jessica Chastain and Michael Pena, the sci-fi drama is about an astronaut presumed dead after a storm on Mars. But he is alive, and tries to find a way to send a signal to Earth.
20th Century Fox
"He Named Me Malala" - Oct. 2 A documentary that chronicles the events leading up to the Talibans' attack on young Pakistani girl, Malala Yousafzai, for speaking out on girls' education.
Fox Searchlight
"Pan" - Oct. 9 In the latest remake of "Peter Pan," an orphan (Levi Miller) goes to Neverland to become the hero named Peter Pan. Hugh Jackman, Cara Delevingne, Rooney Mara, Amanda Seyfried, Garrett Hedlund also star.
Warner Bros.
"Steve Jobs" - Oct. 9 Starring Michael Fassbender, Kate Winslet and Seth Rogen, the biopic follows the true life story of Apple pioneer Steve Jobs.
Universal
"Beasts of No Nation" - Oct. 16 Idris Elba headlines a drama about the experiences of child soldier Agu fighting a civil war in an unnamed west African country.
Netflix
"Bridge of Spies" - Oct. 16 During the Cold War, a U.S. lawyer (Tom Hanks) is recruited by the CIA to rescue a pilot captured in the Soviet Union.
Walt Disney Studios
"Crimson Peak" - Oct. 16 Writer-director Guillermo del Toro's latest feature has a Gothic setup: Following a family tragedy, an author (Mia Wasikowska) is swept away to a creepy house to be with her husband (Tom Hiddleston).
Universal
"Goosebumps" - Oct. 16 A kid teams up with the niece of R.L. Stine, the children's horror author, after demons are set free in Maryland.
Sony/Columbia
"Room" - Oct. 16 Brie Larson plays a mother who is locked in a room with her 5-year-old son until they escape and are forced to face the realities of the world.
A24
"Truth" - Oct. 16 The movie offers a closer look at news anchor Dan Rather (Robert Redford) in his final days at CBS News, after broadcasting a damaging story about President George W. Bush.
Sony Pictures Classics
"Burnt" - Oct. 23 Adam Jones (Bradley Cooper) destroyed his career as chef with drugs and divalike behavior. He cleans himself up and goes to London to spearhead a restaurant that can gain three Michelin stars.
Weinstein Company
"Rock the Kasbah" - Oct. 23 A music manager (Bill Murray) discovers a teenager with a powerful voice while on a music tour through Afghanistan, and takes her to Kabul to compete on the popular TV show "Afghan Star." The film also stars Bruce Willis, Zooey Deschanel, Kate Hudson, Dannie McBridge and Taylor Kinney.
Universal
"Suffragette" - Oct. 23 The film, whose cast includes Starring Meryl Streep, Carey Mulligan and Helena Bonham Carter, follows the early feminist movement in the U.K. as women struggled to earn the right to vote.
Focus
"Our Brand Is Crisis" - Oct. 30
Like "Freeheld," this film is based on a documentary. In this one, Sandra Bullock and Billy Bob Thornton play dueling American political campaign strategists hired by rivals in Bolivia's presidential election.
Warner Bros.
"Jem and the Holograms" - Oct. 23 A small-town girl (Audrey Peeples) becomes a global superstar, and embarks on a journey with her three sisters to discover that some talents are too good to be hidden.
Universal
"Scouts Guide to the Zombie Apocalypse" - Oct. 30 Three scouts have to save the world from a zombie outbreak on the eve of their last camp-out.
Paramount
"Brooklyn" - Nov. 6 Saoirse Ronan stars in a drama set in the 1950s Ireland and New York, as her character Ellis Lacey is torn between two men and two countries.
Fox Searchlight
"Spectre" - Nov. 6 In Daniel Craig's fourth movie as James Bond, a cryptic message sends 007 to uncover a sinister organization. Ralph Fiennes' M tries to keep the secret service alive, while Bond attempts to reveal the truth behind Spectre.
MGM
"Spotlight" - Nov. 6 Starring Rachel McAdams, Liev Schreiber, Michael Keaton and Mark Ruffalo, this drama tells the true story of how the Boston Globe uncovered a scandal of child molestation within the local Catholic archdiocese.
Open Road
"Trumbo" - Nov. 6 Bryan Cranston portrays successful Hollywood screenwriter Dalton Trumbo, who's accused of being a Communist in the 1940s and blacklisted by the film industry. Elle Fanning, Helen Mirren and Diane Lane also star.
Bleecker Street Media
"The Peanuts Movie" - Nov. 6 Snoopy goes on a mission to pursue his arch-nemesis, the Red Baron, while best friend Charlie Brown starts his own quest back home.
Fox
"Love the Coopers" - Nov. 13 Four generations of the Cooper family come together for a gathering, at which they discover new family bonds and the spirit of holidays. Olivia Wilde, Amanda Seyfried, Marisa Tomei, Ed Helms, Diane Keaton, Anthony Mackie and John Goodman are among those starring in the film.
"By the Sea" - Nov. 13 Angelina Jolie Pitt wrote, directed, and stars in this film with husband Brad Pitt about a couple who travel to a tranquil and picturesque seaside resort in 1970s France while their marriage is in apparent crisis.
Universal
"The 33" - Nov. 13 Patricia Riggen's film is based on the 2010 collapse of a Chilean gold and copper mine -- in which 33 miners were trapped for 69 days. The film stars Antonio Banderas, Cote de Pablo, Rodrigo Santoro, Gabriel Byrne and James Brolin.
Warner Bros.
"Carol" - Nov. 20 A department store clerk (Rooney Mara) falls for an older, married woman (Cate Blanchett) in Todd Haynes' romantic drama set in 1950s New York.
Weinstein Company
"Secret in Their Eyes" - Nov. 20 Julia Roberts, Chiwetel Ejiofor and Nicole Kidman star in a drama about an FBI agent (Roberts) who embarks on a long investigation for her daughter's killer.
STX Entertainment
"The Hunger Games: Mockingjay, Part 2" - Nov. 20 In the fifth and final movie of the franchise, Katniss Everdeen (Jennifer Lawrence) and her comrades in District 13 embark a full-on revolution against the Capitol.
Lionsgate
"Creed" - Nov. 25 Sylvester Stallone returns as Rocky Balboa, this time serving as trainer and mentor to Adonis Creed (Michael B. Jordan), the son of former enemy Apollo Creed.
Warner Bros.
"The Good Dinosaur" - Nov. 25 Pixar's movie about the epic journey into the world of dinosaurs features an Apatosaurus as he makes an unlikely friend: a human boy.
Walt Disney Pictures
"Victor Frankenstein" - Nov. 25 In this retelling of Mary Shelley's classic, Daniel Radcliffe's Igor takes center stage as we learn about his dark origins and how he became the assistant of scientist Victor Frankenstein (James McAvoy).
Fox
"The Danish Girl" - Nov. 27 Eddie Redmayne slips into the role of transgender pioneer Lili Elbe, who had what is considered the first successful gender reassignment surgery. Alicia Vikander and Amber Heard costar.
Focus
"I Saw the Light" - Nov. 27 The film, which chronicles the life and tragic death of Country singer Hank Williams, stars Tom Hiddleston, Elizabeth Olsen and Bradley Whitford.
Sony Pictures Classics
"In the Heart of the Sea" - Dec. 11 In Ron Howard's film, a 19th-century whaling ship is preyed upon by a sperm whale, which strands the crew at sea for 90 days. The film stars Chris Hemsworth, Tom Holland, Cillian Murphy and Benjamin Walker.
Warner Bros.
"Sisters" - Dec. 18 Amy Poehler and Tina Fey play two sisters who throw one last party before their parents sell the house where they grew up.
Universal
"Star Wars: The Force Awakens" - Dec. 18 The continuation of the "Star Wars" saga, set 30 years after "Return of the Jedi," stars Harrison Ford, Mark Hamill, Carrie Fischer, Adam Driver, John Boyega and Daisy Ridley.
Disney
"Concussion" - Dec. 25 Will Smith stars as Dr. Bennet Omalu, the neuropathologist who made the discovery of CTE, the football-related brain trauma. The film also features Alec Baldwin, Stephen Moyer and Luke Wilson.
Sony/Columbia
"Joy" - Dec. 25 Jennifer Lawrence and Bradley Cooper step in front of the camera again in "Joy," a film about a suburban mom who launches a domestic goods empire. Robert De Niro and Dascha Polanco costar.
Fox
"Snowden" - Dec. 25 Director Oliver Stone's account of the true story of Edward Snowden (Joseph Gordon-Levitt), who fled the country after notoriously leaking thousands of classified government documents.
Open Road
"The Hateful Eight" - Dec. 25 A bounty hunter (Kurt Russell) gets caught in a blizzard in 19th-century Wyoming and finds shelter with some very suspicious strangers. Quentin Tarantino's Western also stars Samuel L. Jackson, Jennifer Jason Leigh, Bruce Dern and Walton Goggins.
Weinstein Company
"The Revenant" - Dec. 25 Leonardo DiCaprio stars as Hugh Glass, a trapper on the 19th-century American frontier seeking revenge on the people who left him for dead after a bear mauling. Tom Hardy, Will Poulter and Domhnall Gleeson also star.
Fox
"Point Break" - Dec. 25 In an updated reboot of the 1991 Keanu Reeves action classic, a young FBI agent (Luke Bracey) goes undercover to infiltrate a team of extreme-sports athletes he thinks are masterminding corporate heists.
Warner Bros.
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TheWrap Fall Movie Preview 2015: ”Everest,“ ”Spectre,“ ”Sisters“ also among season’s big releases
"Pawn Sacrifice" - Sept. 16 The movie follows chess champion Bobby Fischer (Tobey Maguire) who prepares for his game against Russian Boris Spassky (Liev Schreiber).