Ryan Kavanaugh’s Relativity to announce release dates for Masterminds, The Disappointments Room, Before I Wake, The Crow and Kidnap
Relativity Media today announced that a consortium of investors led by CEO and Chairman Ryan Kavanaugh (referred to as “TJ Group”) have reached an agreement to acquire all of Relativity’s assets except the Relativity Television business. The consortium will shortly file a plan of reorganization.
The transaction will create a path for Relativity to emerge from bankruptcy with a significantly fortified balance sheet and virtually no debt which positions the company for long-term growth. Kavanaugh will remain Chairman and CEO.
“My passion for Relativity is the same today as it was on the day I founded it,” commented Kavanaugh. “I want to thank our employees for their continued focus and dedication throughout the Chapter 11 process. I look forward to working with my partners and with Relativity’s executive team to build and take the company to the next level, continuing its 360 degree content engine approach at a time when content has never before been more valuable.”
Relativity expects to quickly move forward with previously-announced content projects and other business opportunities, and will in due course announce official release dates for movies including Masterminds, The Disappointments Room, Before I Wake, The Crow and Kidnap, which were postponed for release during the bankruptcy process.
As part of the transaction, Relativity has agreed to sell the television division, led by Tom Forman of Relativity, for $125 million.
The Bankruptcy Court hearing is scheduled for October 5, 2015, and the closing date of the transaction is scheduled for October 20, 2015. All entities will operate business as usual until the closing of the transactions.
Relativity will emerge post-Chapter 11 with only $30 million in debt, a significant library and its business units fully intact. The divisions include: Relativity Studios, Relativity Digital Studios, Madvine, Relativity Music, and the company’s stake in Relativity EuropaCorp Distribution, Relativity Sports, and Relativity Education. All of Relativity’s divisions will partner to create compelling original content and work closely with brands to navigate the ever-changing advertising landscape in both traditional and digital mediums.
