A group of Relativity Media’s unsecured creditors have filed a proposed settlement that involves claims to several movies including Bridesmaids and Fast And Furious 6. The settlement proposal was filed late Friday in U.S. Bankruptcy Court for the Southern District of New York. You can read the documents here and here.
The dispute involved the pre-bankruptcy transfer for $1.00 in 2011 from Relativity to certain investment companies its share of rights to a package of movies for Universal Pictures designated Beverly 2. The package included Battleship and Tower Heist. Plaintiffs have argued that Relativity was insolvent long before it declared bankruptcy last year.
The proposal filed Friday would fix the amount claimed by Manchester Securities Corp., its subsidiary Elliott Management and other affiliated concerns at $137 million, but any distribution would not kick in until the amount available to general unsecured creditors exceeds $35 million.
Additionally that amount would increase to $70 million if Manchester objects to the overall bankruptcy plan or the court doesn’t OK the plan. Manchester notes that its proposal would increase the return to general unsecured creditors “by at least a factor of two” and would allow the waiver of distributions whether the bankruptcy plan is confirmed or not.
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