Relativity TV’s skies are getting clearer, as documents filed Tuesday revealed an infusion of cash from their new owners and record growth in earnings and content produced.
The group of Relativity Media’s senior lenders, who won only the TV assets at bankruptcy auction earlier this month, have provided a guaranteed $30 million in capital and assumed a $30 million debt.
“The new company will be well capitalized,” documents said. “Upon acquisition, the New Company will be debt free with $30 million in cash and a $30 million note receivable.”
As far as productivity at the unit, completed episodes of Relativity TV programs — like MTV’s “Catfish” and CBS’s “Limitless” — “are on track to grow by greater than 33 percent from 2014,” papers said.
Earnings before interest, taxes and depreciation show a 237 percent increase for the past six months over the same period in 2014.
The spin-off venture, which is expecting a new name, will be formally acquired on Oct. 20 in the New York Bankruptcy Court. Papers indicated the transition has been smooth.
“The Investor Group is committed to the long term success of the TV Business. There have been minimal disruptions in the TV Business’ workforce throughout the bankruptcy process and there is no indication that the emergence of the business to new ownership will do anything other than solidify the commitment and longevity of their workforce,” they said.
As far as the remaining bankrupt assets are concerned, which includes Relativity’s film division, CEO and Chairman Ryan Kavanaugh is working on a reorganization plan to submit to U.S. Bankruptcy Court Judge Michael Wiles by the end of 2015.
Pamela Chelin contributed to this report.