Relativity Media has received $100 million in financing commitments in advance of a final hearing on its reorganization plan next week, the company announced on Monday.
The new funding includes more than “$100 million in additional commitments from investors,” which include CEO Ryan Kavanaugh, hedge fund honcho Joseph Nicholas, Macquarie Bank, Alphabet (formerly Google) CEO Eric Schmidt’s TomorrowVentures and Carat Global.
The new financing is in addition to $180 million in senior debt acquired by Kavanaugh and Nicholas, as well as an ultimates loan being syndicated by GHL & Company and Aperture Media Partners. The company said Carat Global has also agreed to extend credit for Relativity’s P&A capital, making its debt “much less than expected.”
“With the total financing commitments now successfully in place, we remain focused on emerging from chapter 11 and moving forward with our robust slate of films and our continued evolution as a 360 degree content engine,” Kavanaugh said.
The news comes after a string of recent developments in Kavanagh’s bid to bring his company out of bankruptcy, including the hiring of Kevin Spacey and Dana Brunetti as Chairman and President of the company’s movie division, respectively, and a challenge to Relativity’s Chapter 11 reorganization plan by Netflix in a New York bankruptcy court last week.
In documents obtained by TheWrap, Netflix counsel said there’s “considerable doubt” as to who is running the show, with Kavanaugh, Spacey and Brunetti all claiming lofty job titles, and Nicholas’ substantial investment potentially making him a decision maker as well.
Relativity has been embroiled in protracted Chapter 11 proceedings, the reorganization plan for which is scheduled for final review by a bankruptcy judge on Feb. 1.
The plan filed in November and amended several times since includes a slate of seven films funded in part by a new P&A/ultimates loan of up to $250 million. It also calls for a $100 million capital increase.
Sundance Deals: What's Sold So Far, From 'Tallulah' to 'Under The Shadow'
Sundance Film Festival
"The Fundamentals of Caring" Sells to Netflix Paul Rudd and Craig Roberts struggle with looking after one another in Rob Burnett's comedy, but Netflix was more than happy to look after the SVOD rights for nearly $7 million.
"Tallulah" Sells to Netflix Netflix scooped exclusive SVOD rights to Sian Heder's "Tallulah" to the tune of $5 million, which follows Ellen Page as a nanny gone rogue. An unnamed theatrical partner will release the film in the latter part of 2016.
"Complete Unknown" Sells to Amazon Rachel Weisz and Michael Shannon seduced Amazon into purchasing U.S. rights to this thriller, in which Weisz plays a mysterious dinner party guest who Shannon swears he's met before. And he may be right. Amazon will seek a theatrical distributor for later in the year.
"Love and Friendship" Sells to Amazon/Roadside Whit Stillman's reteaming of Chloe Sevigny and Kate Beckinsale goes from the after-hours life of "The Last Days of Disco" to the sidewalks of Jane Austen in "Love and Friendship" -- which now belongs to Amazon for streaming and Roadside Attractions for theatrical. The partnership comes after the companies worked together on Spike Lee's "Chi-Raq."
"Under the Shadow" Sells to Netflix The Iranian horror film "Under The Shadow" -- which has been compared to "The Babadook" -- had its SVOD rights go to Netflix.
"A Birth of a Nation" Sells to Fox Searchlight Fox Searchlight closed a record-breaking deal to acquire worldwide rights to Nate Parker’s “Birth of a Nation” for $17.5 million, which is believed to be the most paid for any film in Sundance history.
"Equity" Sells to Sony Classics Sony Pictures Classics acquired worldwide rights to “Equity,” a female-driven Wall Street tale starring Anna Gunn, James Purefoy, Sarah Megan Thomas and Alysia Reiner.
"Indignation" Sells to Summit Lionsgate’s Summit Entertainment acquired North American rights to James Schamus‘ directorial debut “Indignation” for $2.5 million. The coming-of-age drama is based on the novel by Philip Roth about the son of a kosher butcher who leaves his sheltered family life in New Jersey to attend college in Ohio, where he clashes with the dean.
"Morris from America" Sells to A24 A24 acquired domestic rights to Chad Hartigan’s “Morris From America,” which stars Craig Robinson and newcomer Markees Christmas. The nearly seven-figure deal will fall under A24’s pact with DirecTV, which recently released the company’s Garrett Hedlund-Oscar Isaac thriller “Mojave.”
"Manchester by the Sea" Sells to Amazon Amazon has closed a $10 million deal for domestic rights to Kenneth Lonergan’s family drama “Manchester by the Sea,” which garnered rave reviews following its world premiere at the Eccles on Jan. 23.
"Eat That Question" Sells to Sony Classics Sony Pictures Classics acquired worldwide rights to the documentary “Eat That Question — Frank Zappa In His Own Words,” about the legendary composer-musician. The film is told entirely through archival footage assembled from the performer’s 30-year career in entertainment, including rare TV interviews and performances from around the world.
"The Fits" Sells to Oscilloscope Laboratories Oscilloscope Laboratories acquired U.S. rights to Anna Rose Holmer’s debut feature “The Fits” from Mongrel International, just days before the film’s Sundance premiere. Oscilloscope will release the film theatrically this summer, when it will first open New York’s new Metrograph theater.
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Studios, indie players and deep-pocketed streaming companies compete for 2016’s best films. Here’s who won
Sundance Film Festival
