EXCLUSIVE: Relativity Media is finally, formally out of Chapter 11 bankruptcy protection: Today was the “Effective Date” of the exit plan, the company says in a filing at the U.S. Bankruptcy Court in New York that calls the terms “substantially consummated.”
The court is still scheduled to hold a hearing next week over a few remaining disputes. They include one from Relativity’s former restructuring advisers, FTI Consulting, seeking payment for its services in the three months that ended on October 31.
Judge Michael Wiles approved Relativity’s reorganization on February 8, but made it contingent on the studio showing him that it had the funding and leadership it had assured him was all but lined up. Relativity returned on March 18 with different arrangements which the judge accepted.
One lingering question is how Relativity’s leadership will be structured.
Word has it that interim president Ramon Wilson’s status has changed, though he still appears on Relativity’s website. Relativity declined comment, and Wilson did not return a call.
The site also lists Ryan Kavanaugh as CEO. At one point this week the site listed Kavanaugh and his financial backer Joseph Nicholas as co-CEOs and co-Chairmen.
Dana Brunetti is due to run the studio: Relativity had assured the court that he and his business partner, actor Kevin Spacey, were lined up to manage film and TV. That changed in early March when the House of Cards star bowed out. To win Wiles’ approval for the bankruptcy exit, Relativity presented an employment contract with Brunetti.
Nicholas assured Wiles last month that investment cash would start to roll in once it’s on its own. The studio is “planning on engaging with bankers to work on the [capital] raise immediately,” he said. “Already we have interested parties contacting us. They want to start a dialogue as soon as we emerge” from bankruptcy.
Relativity filed for bankruptcy protection on July 30 after it was unable to keep up with payments on multiple loans.
The studio has yet to release two films that were scheduled for March and April: Before I Wake and The Disappointments Room. Last month Relativity lost its distribution chief, Kyle Davies, who is now Paramount’s President of Domestic Distribution.