Embattled Relativity Media is looking to sell the chase movie Collide to IM Global for $200,000 and additional possible payments of up to $630,000 in exchange for IMG dropping objections to Relativity’s bankruptcy plan. Papers were filed Saturay in Federal Bankruptcy Court in New York. You can read the filing here.
While nothing else has been filed yet concerning individual properties, this could be the first of many asset sheddings that the Ryan Kavanaugh run company move to make in the next few days. The Eran Creevy-directed movie starring Nicholas Hoult, Felicity Jones, Ben Kingsley and Anthony Hopkins had been due for theatrical release in the U.S. on October 30 but has been stalled with other projects as Relativity negotiates through bankruptcy.
Relativity made a deal with IM Global in 2014 to distribute Collide in the U.S. and now IM Global seeks to re-acquire the picture that has also been known as Autobahn. According to Saturday’s filing, Open Road Films would distribute Collide and would be required to provide quarterly accounting statements concerning gross receipts for the picture until amounts due to Relativity have been paid.
The Bankruptcy Court is scheduled to convene Monday at 11 AM ET to weigh multiple objections to the sale process. It now must determine which of the bids are qualified or serious. On Friday, only three or four companies put in modest bids for Relativity’s television division — considered the Kavanaugh shingle’s strongest asset — according to a person with first-hand knowledge of the studio’s bankruptcy process.
Friday was the deadline for bids to take the studio out of Chapter 11 bankruptcy protection, but “nobody has come close” to a $250 million offer for the entire company from creditors informally known as Stalking Horse Bidders, the person told Deadline. “All bids are quite low.”
Anchorage Capital Group, Falcon Investment Advisors, and Luxor Capital Group are part of that Stalking Horse group — investment firms that are owed a bundle — in fact, $360 million-plus. Barring a change in the court’s sale plan, they will take hold of the company.
Relativity filed for Chapter 11 bankruptcy protection this summer after failing to meet payments to their lenders. Deadline first broke the story about the company’s precarious situation and that bankruptcy was a possible outcome as creditors were growing impatient.