The biggest loser in Relativity Media’s Chapter 11 bankruptcy filing on Thursday appears to be Carat USA, the giant advertising agency with the biggest debt to the embattled movie studio: $36.8 million.
Carat won’t see the funds anytime soon. And as one of 50 unsecured creditors listed in Relativity’s filing, it could wind up with just pennies on the dollars that it is owed. Not surprisingly, it is one of the disputing the claim.
A bankruptcy judge will oversee any payments, which would come from funds from the sale of Relativity’s film and TV assets, and only after the company’s secured creditors — led by New York-based Anchorage Capital — are made whole.
Other unsecured creditors who are owed significant sums by Relativity include Palisades Mediagroup, an L.A.-based brand agency, and the Canadian DVD and disc manufacturer Cinram Group, claiming $5.1 million and $4.1 million respectively.
Calls by TheWrap to Carat, Palisades Mediagroup and Cinram Group were not immediately returned Thursday.
The debtors also include Technicolor Digital Cinema ($3.4 million), Technicolor Inc. ($3 million), Cinedigm Digital Cinema Group ($1.9 million) and the company created for the faith-based Nicolas Cage movie “Left Behind” ($1.8 million). Credit card company American Express is owed $1.5 million.
There are many companies well-known throughout the industry listed, including Say Media ($1.4 million) and Deluxe Advertising ($861,750). So are TV syndication specialists Debmar-Mercury ($212,500), film advertising ageny mOcean Pictures, Eclipse Marketing Services ($180,646) and Sony Electronics ($193,914).
There are creatives on the list as well, including photo editor Bruce Talamon, actor-producer Patrick White, writer-director Daniel Segal, Jeff Most and Michael Jarma, all of whom are seeking unspecified amounts.
One of the odder debts — unless you are currently stylin’ in “Act of Valor” earrings — is the $200,000 owed to New York fashion accessories outfit Alexander Wang.