UPDATED with Relativity statement: Relativity Media can continue to tap its $35 million in debtor in possession (DIP) financing, the U.S. Bankruptcy Court ruled today, after the studio dealt with several objections raised by Judge Michael Wiles and others.
“You addressed all of my concerns quite clearly,” the judge said about a DIP agreement that last week he called “about as opaque as could be.” Today’s hearing lasted less than 10 minutes.
The $35 million obligation was recently bought by Paul Singer’s hedge fund Elliott Associates, and its subsidiaries Manchester Securities and Heatherden Securities.
A lawyer for Relativity said that there was still a minor dispute with an unnamed creditor that’s “95% resolvable” and would not affect the court order itself. Wiles said that he’d allow the order to go through on that basis.
A company spokesperson released the statement below following the court’s ruling:
Relativity Media today announced that it has received verbal approval from the U.S. Bankruptcy court for its amended DIP Facility in the amount of $35 million.
As announced on October 21, a consortium of investors led by CEO and Chairman Ryan Kavanaugh has completed its acquisition of all of Relativity’s assets other than the unscripted television business. Relativity is proceeding toward emergence from chapter 11 and remains focused on completing and submitting to the Court its plan of reorganization that will detail its capital structure and strategy for long-term growth with film, digital, music, sports and branded entertainment.”