The parade grows longer of entities that say they may object to terms of Relativity Media’s planned sale to escape Chapter 11 bankruptcy. Today, Limitless writer Leslie Dixon and producer Scott Kroopf joined in a filing at the U.S. Bankruptcy Court in New York. Twentieth Century Fox Home Entertainment and FX filed a separate, but similar, complaint.
Limitless is “one of Relativity’s most successful motion picture films,” and provided the basis for a new series on CBS, Dixon and Kroopf say. The 2011 thriller starring Bradley Cooper and Abbie Cornish involves a writer who, with the help of a pill, is able to tap 100% of his brain’s power.
CBS’ drama series based on the movie premiered September 22.
But Dixon and Kroopf are troubled by Relativity’s plan to include the film in the assets up for sale — potentially to creditors known in the case as Stalking Horse Bidders who have offered $250 million for the studio.
The Limitless team says it doesn’t necessarily oppose a sale. But it might if the agreement doesn’t include Relativity’s individual obligations to them. The status of their deals is murky as a result of agreements Relativity made with others including Manchester Library Co., a subsidiary of Paul Singer’s Elliott Management.
Dixon and Kroopf also want assurance that a buyer would make good on two quarterly payments to them that Relativity hasn’t made.
In addition, they say they may object if a buyer doesn’t appear qualified to handle the production. “The Limitless Producers have not received anything that would establish that the Stalking Horse — which is a special purpose entity with no track record — will be able to perform the obligations involved in the Producer Agreements,” they say.
Fox’s complaint stems from its agreement to distribute Relativity films, including Act Of Valor, it says today. In 2012, Relativity transferred the rights to some of the films to Manchester — and the rights now could be assigned to a buyer.
The problem, Fox says, is that its distribution agreement might be left out of a sale. If that happens then it “reserves the right to be further heard and assert a cure,” the company says. Fox also says it has liens against the films, and might object if they’re extinguished in a bankruptcy sale.
Two Relativity films that Fox distributes — The Lazarus Effect and Woman In Black 2 — are not part of the planned sale. Fox says that would protest if, as a result, it leaves the company with “a default…which must be cured.”
FX has a similar complaint involving two unnamed movies for which it has exhibition rights. The network says it might lodge a protest if that agreement is left out of a sale agreement.
An auction is scheduled to take place tomorrow. The Bankruptcy Court plans to weigh the results on Monday.
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