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.
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.