The night before another hearing in the Bankruptcy Court, Relativity announced that it has changed the structure of the deal for its planned acquisition of assets from $60M in cash and a $30M to $65 million in cash and $60 million in debt. They say a deal has been reached to everyone’s approval.
The consortium making up this deal includes Relativity CEO Ryan Kavanaugh and financial partners VII Peaks Capital, Joseph Nicholas, and a very small amount from Ron Burkle’s OA3. Deadline hears that the amount that Burkle threw in was small, perhaps in the $4M range.
This comes after Judge Michael Wiles approved TV deal with the Stalking Horse Bidders. That group includes Anchorage Capital, Falcon Investment Advisors, and Luxor Capital.
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Kavanaugh and the consortium of financial partners still must lay out their plans before the court in January for approval. As a next step, the consortium will file a plan of reorganization with the Court detailing the company’s capital structure and its strategy for long-term growth with film, digital, music, sports and branded entertainment — something that must be in place and satisfy the Judge before he approves any deal.
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