EXCLUSIVE: Relativity Media CEO Ryan Kavanaugh is said to be preparing to sue key lender Colbeck Capital for breach of fiduciary duty among other causes, for what insiders said will claim that Colbeck (which held seats on the board) met with investors behind the backs of the Relativity board about an alternate plan of sale of the company. Another cause of action may be a violation of torts regarding intentional interference with contracts and economics in a mega-lawsuit that attorneys are said to be drawing up legal papers for now.
Word of this mega-lawsuit being readied comes as the company had its latest hearing in U.S. Bankruptcy Court this morning. The deadline for bids was just extended until 8 PM tomorrow. The company sale hearing, however, will still go forward on October 5.
The rancor between Colbeck and Kavanaugh/Relativity comes after the embattled CEO has publicly accused Colbeck’s Tony Vinciquerra of spreading rumors to damage the company while also trying to purchase it in a buyout.
Colbeck had held two seats on the Relativity board after it joined the company in 2012 and played a key role in what was a $350 million debt-financing deal that allowed the company to expand its business and fund its slate of films. But this year in May, Colbeck executives Jason Colodne and Jason Beckman were acrimoniously kicked off the board, and Kavanaugh accused them of the same rumor-mongering.|