Ryan Kavanaugh, Investors to Pay $60 Million for Bankrupt Relativity Assets

Group consisting of VII Peaks Capital, OA3 and Joseph Nicholas also acquiring $30 million in debt

Last Updated: October 5, 2015 @ 10:23 AM

Ryan Kavanaugh and a new consortium of investors have put together a total of $90 million for his repurchase of Relativity Media, according to court documents filed Monday.

Kavanaugh and a group including VII Peaks Capital, OA3 and Joseph Nicholas are coming to the table with $60 million to buy out debtors for the whole of Relativity’s bankrupt assets, minus its TV division which was won at auction by a group of senior lenders. In addition, Kavanaugh and his new investment team is prepared to acquire $30 million in debt.

“The ‘Additional Investors’ have entered into agreements with the Debtors to purchase the debt outstanding,” documents said, though the group will “continue to hold claims under the TLA/TLB Facility in the amount of $30,000,000.”

On Monday, U.S. Bankruptcy Court Judge Michael Wiles will hold a hearing on approval of last week’s auction which resulted in the $125 million sale of Relativity’s lucrative TV division to a stalking-horse group of senior lenders that included Cortland Capital, Anchorage Capital, Falcon Investment Advisors and Luxor Capital.

The TV division’s production stable includes MTV’s “Catfish: The TV Show” and CBS’ scripted drama “Limitless.” An individual close to the lenders previously told TheWrap they long thought the property to be the “crown jewel” in the nine-year-old studio’s portfolio.
But there were no bidders for the rest of the nine-year-old company’s assets, which include Relativity Studios, Relativity Digital Studios, Madvine, Relativity Music, and the minority stakes in a sports management operation, a for-profit education venture and Relativity EuropaCorp Distribution.
The company’s assets include four unreleased films: the Halle Berry thriller “Kidnap,” the Kristen Wiig-Zach Galifianakis comedy “Masterminds,” the Kate Beckinsale drama “The Disappointments Room” and the Kate Bosworth thriller “Before I Wake.”
In addition, the filing mentions that it retains U.S. distribution rights to the Lake Bell-Jon Bernthal L.A. gangster movie “Shot Caller” and “The Secret Scripture” starring Rooney Mara and Theo James.

Another film, the Nicholas Hoult action thriller “Collide,” was released back to its lead financer, IM Global, after the company pursued legal action over the protracted nature of the bankruptcy auction process.

Despite Relativity’s claims that it expected 20 to 25 bids for the company’s assets at last Thursday’s auction, the new filing indicates that only 10 outfits met with company management out of 67 that had signed non-disclosure agreements to look at Relativity’s books.

Pamela Chelin contributed to this story.

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