EXCLUSIVE, UPDATED 11:30 AM: Relativity has gotten a 10-day extension to try to get financing in place, sources tell Deadline. In addition, the company has been looking for help on a number of films, The Crow, the action-thriller Hunter Killer, the comedy Masterminds and the Halle Berry-starring Kidnap, aggressively seeking and talking to a number of players to partner or take over these and other films. Hunter Killer, starring Common and Billy Bob Thornton, hopes to go before the cameras on August 3rd in Louisiana.
However, the lenders have placed their overseers at Relativity to supervise any and all transactions that may transpire. Going forward, the lenders will sign off on all transactions that Relativity and its CEO Ryan Kavanaugh hope to enter into, sources told Deadline.
While a Relativity insider first confirmed that there was a 10-day extension as have other sources, a spokesperson officially had no comment. And now at 11:30 AM, the spokesperson released this statement: “We are close to concluding an overall deal with our lenders and new equity partners which will position the company for long-term growth. There is no 10-day period, and Relativity is not exploring the sale of any of our films. We are highly confident in the company’s future.” After that, a second statement came that said, “The 10-day extension is absolutely false and incorrect.” Okaaay. Does anyone believe anything that Kavanaugh says anymore?
Kavanaugh reached out to many in Hollywood and financial players to do everything from looking for equity investment and laying off films to finding possible reverse mergers and recently asked for another extension. He is on a very short leash now as he scrambles to secure financing and partnerships to keep the films on track that it has.
The question is whether Kavanaugh can survive this or will be pushed out. Equity partner Colbeck Capital whose two executives were kicked off the Relativity board a little over two weeks ago, is now flexing its muscle in making the decisions on the direction of the company. Whether Relativity will undergo a Chapter restructuring or involuntary administration is yet to be seen. And questions continue about what kind of company Relativity will be going forward.