EXCLUSIVE: Just days after Relativity Media pushed the release date of its comedy Masterminds for the third time (it’s now on October 9), we hear that the company yesterday missed their extension deadline that they were given by investors. Also, we’re hearing that Relativity is on the verge of pushing Jane Got A Gun (which it’s partnered with The Weinstein Co. on) off its September 4th release date which, of course, raises more questions about whether the company has blown through its P&A money. That would then mark the fourth time that the Ewan McGregor, Natalie Portman film (which has been mired with other problems) has been postponed. Relativity declined to comment.
This news comes after a report that Catalyst Capital would buy off the company’s debt and put in a huge equity investment, which the Toronto-based private equity firm has yet to confirm or even comment upon. We’ve been told by those savvy in financial matters that any Catalyst deal would come with a number of contingencies and conditions, not the least of which is finding a big equity player to come to the table. After that, there are other levels of financial agreements that must be met.
We understand that there was a very wealthy potential investor as late as last week who was looking to become an equity player, but that he turned tail after looking further into Relativity’s business. Patience from the investors is also said to be wearing very thin. Sources said that there has been talk of a Chapter restructuring but that Kavanaugh — who, let’s face it is a financial magician — is still keeping all options on the table. He is, by all accounts, a guy who doesn’t like to lose.
The company is currently saddled with a heavy overhead; it is known that Relativity is continuing to look for partners on its films. All of this uncertainty is weighing heavily on the staff. This reminds me very strongly of the same situation that happened with MGM (which time, right?) where the employees went to work day-to-day being told that everything was business as usual while soon after, the company went into bankruptcy, the company’s momentum frozen in place along with all the assets. But then again, MGM emerged out of bankruptcy, stronger.
Not saying that a bankruptcy will happen here, but, anything could happen. One person said, “this could go on for another 30 days for all anyone knows. It sucks.”
Their next film on the slate is now Before I Wake with Kate Bosworth and Thomas Jane on September 25th.
Hang in there, Relativity staffers.