The tally, which the studio submitted to the court today, names 275 entities. Relativity says that the “non-exclusive” list doesn’t necessarily mean that it plans to take them to court. It’s “intended as a preservation or rights” for “possible claims which remain under investigation and which may be prosecuted by the Relativity Litigation Trust.”
Still, it’s some list. It includes: PR firms Brunswick Group (which represents Relativity), Hiltzik Strategies, and 42West; news outlets Variety (owned by Deadline parent PMC) and The Wrap; previous financial backers Ron Burkle, Elliott Management, Colbeck Capital, VII Peaks Capital, RKA Film Financing, and former co-Chairman Steven Mnuchin; former Relativity President Tucker Tooley and TV chief Tom Forman; and former restructuring advisers FTI Consulting and Brian Kushner.
Also named are studios including ABC, DreamWorks Animation, Fox Entertainment, The Weinstein Co, and Warner Bros. And the list includes several entities tied to the studio including Relativity Education and Relativity Sports.
Judge Michael Wiles will hear the case for Relativity’s “Litigation Trust” at a February 1 hearing to consider the company’s amended reorganization plan. It also includes changes to the financing agreements.
The trust’s assets would consist of what Relativity calls a $2.0 million “Television Sale
Committee Allocation” plus $500,000 that would not be subject to repayment. But it also could include “an additional to-be-determined amount” from the Reorganized Debtors — a group led by CEO Ryan Kavanaugh — which would have to be repaid, and would be used “to fund pursuit of litigation claims by the Litigation Trust.”
The document says that the initial Litigation Trustee has yet to be determined. That person could decide how to spend the money without additional Bankruptcy Court approval, but will consult with an unnamed three-member Trust Advisory Board. The Trustee could only be removed by a unanimous vote of the Board.
The Trust would be liquidated within five years, but its managers could ask the Bankruptcy Court to extend it by three years.