One of Relativity Media’s most aggressive lenders backed down in a U.S. Bankruptcy Court on Tuesday, withdrawing its objections to the looming sale of the studio’s assets.
RKA Film Financing, which was attempting to seize the rights to four films it had loaned Relativity money to promote, showed up in Judge Michael Wiles’ New York courtroom and formally withdrew complaints regarding the sale process and regulation of debtor-in-possession financing, court-approved cash collateral that Relativity has been using to operate since filing for Chapter 11 last month.
“We think we need to get on with business here,” an attorney for RKA said, before excusing himself to catch a flight.
RKA previously filed a motion seeking to seize the four films for which it loaned the studio millions of dollars to promote — including the Kristen Wiig-Zach Galifianakis comedy “Masterminds” and the Halle Berry thriller “Kidnap” — in an effort to recover its losses.
In the days following Relativity’s July 30 Chapter 11 filing, the two companies traded plenty of punches in filings. RKA accused Relativity CEO Ryan Kavanaugh of misappropriating P&A funds to inflate the studio’s balance sheet in seeking investors.
Kavanaugh, in turn, said RKA was attempting to take advantage of his mini-major’s diminished position to obtain the ten percent stake the executive had in the vendor.