A U.S. Bankruptcy Court Judge approved Relativity Media’s reorganization plan in court on Tuesday, bringing Ryan Kavanaugh‘s company one step closer to emerging from the Chapter 11 process.
“I won’t make the same mistake twice,” Kavanaugh told TheWrap as he left proceedings in New York City, where he shed tears and hugged members of his legal team.
“It was a literally tireless six, seven months. This code, this law, was set up for people who made mistakes and have something worthwhile, who deserve a second chance.”
The hearing, one of many since Relativity’s July 2015 filing, began Monday and saw swift resolution of remaining creditor objections. The studio also boasted a nearly 70 percent debt reduction, from $910 million before bankruptcy to a current $280 million.
Judge Michael Wiles expressed his concern for the company’s sustained financing as it prepares to release movies mired by the bankruptcy process and fund new projects. At present, only $20 million of $100 million in new financing announced by Relativity appears on its balance sheet.
“Today we achieved an important milestone in Relativity’s path to emerging from chapter 11 as a stronger, well-capitalized media company that is well positioned for growth and success,” Kavanaugh added in a statement.