UPDATE, 5:22 PM: Relativity CEO Ryan Kavanaugh has a bone to pick with a Daimler Trust filing today charging that he has dafaulted on a lease for a 2012 Mercedes-Benz SLSR. Although his signature’s on the lease, the certificate of title indicates that “Relativity Media LLC LSE” is “the registered owners of the vehicle,” Kavanaugh told the U.S. Bankruptcy Court late today. Daimler’s filing also is “internally inconsistent” by sometimes saying that Kavanaugh is in default but also saying that the “debtor” is responsible. “Kavanaugh is not a debtor in the above-captioned case” and while one of them “may have defaulted on certain obligations under the lease, Kavanaugh is not the defaulting party.”
Kavanaugh wants Daimler to withdraw the motion and “submit a revised, corrected form.” The filing adds that Daimler says it “will review and amend” it “as necessary to eliminate inconsistencies.”
Previous with Relativity statement, 1:11 PM. Relativity CEO Ryan Kavanaugh is scheduled to be deposed by month’s end in his company’s bankruptcy case. A September 29 date set for him to sit before lawyers in Los Angeles while the term loan lenders are seeking to bar testimony until three days after. Regardless, the embattled CEO could be under oath and testifying in a matter of a week, bankruptcy filings today show. As part of a disagreement over discovery requests and lack of witnesses, attorneys for Manchester Securities (one of its biggest lenders) noted that the term loan lenders “seek to bar testimony by Mr. Kavanaugh, the architect of the Debtor’s business” and that they “have offered no reason to block this testimony, and the Court should insist upon hearing it.”
There also is the typical squabbling over discovery requests, with Manchester saying that it “would agree to produce all correspondence with Mr. Kavanaugh since the petition date. If that resolution is not agreeable … the parties should prepare formal discovery responses, suspend depositions between the Term Loan Lenders and Manchester, and permit the Court to address these issues with formal responses and production before it. In all events, the deposition of Mr. Kavanaugh should proceed.”
Court filings also show that Mercedes-Benz of South Bay leased Kavanaugh a 2012 Mercedes-Benz SLSR and that the CEO has fallen behind on payments to the tune of more than $7,000 with an outstanding balance of nearly $133,300 (read the document here). His monthly payments were $3,503.49 for 48 months, but he has ceased paying them all the while continuing to use the car, according to lawyers for the dealership.
His next payment is due in 10 days. The dealership says there is a net balance due of $132,294.18 because he has defaulted on the lease under the agreement he signed. He has also failed to provide evidence of insurance coverage. It is asking the court to take immediate possession of the car. Yes, they seek to repossess Kavanaugh’s car. The contract shows that Kavanaugh himself signed the lease agreement in March 2012.
Relativity said that although Kavanaugh’s signature is on the car’s lease, they said he signed the lease for someone else in the company. “This is a car that was leased by the Company for our former President of Production, and the title is in Relativity’s name. Ryan Kavanaugh purchases his own personal vehicles,” said a company spokesman.