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Relativity TV Has Earned $22 Million Since Bankruptcy

Thomas Forman’s unit has exceeded revenue projections, according to new court filing, though company has been pressed to hold $8.6 million in escrow

Since Relativity Media filed for bankruptcy on July 30, the company’s television division has produced more than $22 million in revenues, exceeding projections of $18 million for the two-month period through Sept. 30, according to a court filing on Sunday.

However, the company’s chief restructuring officer Brian G. Kushner reported that “in at least two instances” Relativity TV heads Thomas Forman and Andrew Marcus “have had to establish escrow arrangements … to secure certain of these payments from large customers.”

As of Sept. 30, $8.6 million of cash receipts for Relativity TV had been set aside in escrow accounts. The filing did not reveal what two networks had requested the escrow pools.

On Monday, U.S. Bankruptcy Court Judge Michael Wiles approved a revised incentive program for Forman and Marcus to split up to $655,000 in bonuses in order to remain at the company through the completion of its sale.

Pulling the curtain back on the challenges facing a successful TV division operating under bankruptcy conditions, Kushner’s filing described Forman and Marcus’ efforts to secure payments and reassure the TV networks that the company was still functioning and would follow through on its production obligations.

“Mr. Forman and Mr. Marcus have spent significant amounts of time working with senior executives at these network customers to get them comfortable that their television shows will continue to be timely produced with the same quality as before if they continue to fund their licensing fee payments,” he wrote.

Forman’s TV division, which produces such small-screen hits as MTV’s “Catfish” and CBS’ new scripted drama “Limitless,” has been a rare bright spot in Ryan Kavanaugh‘s troubled mini-studio.
Relativity TV brought in a $96.6 million in revenues in 2014, and counts a nimble 24 full- and part-time employees on top of 510 temporary production staff. It currently has 29 series in production.