Relativity TV Sale Approved by Bankruptcy Court

Judge Michael Wiles clears path for Thomas Forman’s division to spin off, pushes off decision on Ryan Kavanaugh’s restructuring plan for rest of assets

ryan kavanaugh

U.S. Bankruptcy Court Judge Michael Wiles has approved the sale of Relativity Media’s TV division to a group of senior lenders, as Ryan Kavanaugh and a group of investors seek to close a restructuring plan for the 9-year-old company’s remaining assets.

At the Tuesday hearing, delayed 24 hours to give parties more time to read through late paperwork filed about the sale, attorneys for Relativity also resolved a handful of remaining objections.

Wiles is also expected to evaluate a reorganization plan from studio CEO and chairman Kavanaugh and financiers at an October 20 hearing.

The parcel of assets that Kavanuagh’s group would oversee includes Relativity Studios, with movies like the Kristen Wiig comedy “Masterminds,” Nicholas Hoult‘s “Collide” and Rooney Mara‘s “The Sacred Scripture,” as well as projects in development like a planned reboot of “The Crow.”

It also includes the company’s minority stakes in a sports management group, the for-profit Relativity Education and a joint film marketing and distribution entity with EuropaCorp.

Anchorage Capital, Falcon Investments and Luxor Capital are expected to complete their acquisition of Tom Forman’s Relativity TV unit by Oct. 20 after it emerged as the winner in an auction with its $125 million bid.

Relativity TV — which has hits like MTV’s “Catfish: The TV Show” and CBS’ scripted drama “Limitless” —  brought in a $96.6 million in revenues in 2014, and has managed to exceed projections since the company’s bankruptcy filing, earning $22 million in the last two months.