The letters are flying fast and furious this week in Relativity’s Chapter 11 case over whether Ryan Kavanaugh should have sat down for a grilling from Neal Moritz’s lawyers. In the latest move in the battle over the Hunter Killer pic, the Fast & Furious producer wants the CEO to be deposed ASAP. In anticipation of a hearing in the company’s reorg set for tomorrow, Relativity said today that such a deposition is a waste of Kavanaugh’s time.
“The Court should not allow for the Hunter Killers to distract Relativity and its CEO from the important, time-intensive business of seeking to reorganize the Debtors’ businesses,” Jones Day attorney Todd Geremia Wednesday wrote bankruptcy Judge Michael Wiles for Relativity (read it here). “The deposition of the Debtors’ CEO that the Hunter Killers seek would be a distracting sideshow.” Geremia also rejected the Hunter Killers parties’ objection motion in the case and the idea of holding a conference on the matter on Veteran’s Day, a federal holiday.
Wednesday’s letter from Relativity was in response to correspondence from Moritz and others involved in the potential Gerard Butler film that was sent on Tuesday. “The Hunter Killer Parties urgently need to depose Kavanaugh to take discovery which will prove that Relativity is categorically incapable of reorganizing under Chapter 11 and emerging as a viable production house,” said Michael S. Elkin of Winston & Strawn LLP for Moritz and others in the November 10 letter to Judge Wiles (read it here).
On November 6, a day after calling Relativity a “failure,” the Hunter Killer group served Kavanaugh with their depo notice, first for today. Three days later Relativity told them Kavanaugh was not available. “The parties subsequently conferred …in a good faith effort to resolve their dispute, but have yet been unable to do so,” Elkin added.
Moritz and others have been fighting for months to seek resolution on the ownership of the movie based on the novel Firing Point by George Wallace and Donald Keith from Relativity. They said back in September that any agreements with the company over the pic were worth less than the paper they are written on because they had been “misled” on Relativity’s real financial situation. Relativity obviously disagrees.
On November 5, Moritz and others filed a last minute objection to a motion to extend exclusive periods for Relativity on such film projects as they got their reorganization in place – a reorg that the Hunter Killer gang say is nothing but a pretense for “liquidation.” Mortiz’s lawyers claim that if they have to wait until the projected deadline of May, they will be unable to make Hunter Killers with Butler. Relativity again obviously don’t agree and say that they’ve put over $7 million into the film, money they are not willing to throw away for Hunter Killer to go somewhere else.
With today being a holiday, it is unlikely anything will be resolved on this before tomorrow’s hearing in NYC.