Relativity Bankruptcy: Television Execs Will Stay Aboard After Sale

The management of Relativity Television including Thomas Forman and Andrew Marcus “will continue to serve going forward,” a lawyer for the hedge funds buying the operation told the U.S. Bankruptcy Court this morning. They’re still finalizing the agreements.

Last week Judge Michael Wiles approved a deal to sell TV — Relativity’s crown jewel — to creditor group known in the case as Stalking Horse Bidders that includes Cortland Capital, Anchorage Capital, Falcon Investment Advisors, and Luxor Capital. They agreed to forgive $125 million worth of debt in exchange for the operation.

But today’s hearing became anticlimactic after Relativity Media told Wiles that it had reached agreements with several companies that had objections to the agreement approved last week to sell the TV properties. Other complaints will be dealt with at a hearing on October 19 — the day before the sale is due to close.

Shoutz, Showtime, CIT, and Fox “have signed off on” a compromise to protect their rights, the lawyer said. Another one with IATM should be completed “in short order” following “one last tweak to the sale order language.”

A lawyer for Brett Ratner told Wiles that “one of our arguments and objections got lost” in the discussions with Relativity over whether the TV sale can be made without interfering with his rights to two productions. He had raised concerns about the fate of his interests in movies Mirror, Mirror and Skyline.