Relativity resolved a long-running dispute with Netflix over a lucrative licensing contract earlier this month, clearing the way for the sale. It also reached an agreement with its unsecured creditors, removing another significant obstacle to the planned sale.
“Court approval of the sale today ends four difficult years for Relativity and marks a new beginning for the company,” said Colin Adams, Relativity’s chief restructuring officer. “Relativity’s administrative and priority creditors will be paid in full and unsecured creditors, including creditors from prior cases, will see meaningful recoveries, funded in part by the company’s successful partnership with Netflix.”
UltraV Holdings is a joint venture of Sound Point Capital Management, a New York asset-management firm with $17 billion of assets under management, and RMRM Holdings, led by David Robbins, former chairman of Bally Technologies, Lex Miron, veteran media advisor, and Larry Robbins, a media industry executive.
The joint venture is acquiring Relativity in exchange for waiving $40 million in outstanding obligations, assuming its liabilities and funding wind-down administrative costs, and setting aside $350,000 in cash for unsecured creditors.
UltraV has said it intends to provide enough money to revive the studio so it can again develop and distribute content through Netflix and other platforms.
“Our simple message to the industry is that Relativity Media is open for business and we look forward to demonstrating that we intend to operate a substantial and well financed entertainment company with strong and stable leadership,” David Robbins said in May, when the sale was announced.
The studio’s founder, Ryan Kavanaugh, is still in the picture, having reached a consulting agreement with the new owners that pays him $10,000 a month, plus expenses, for a year. He also stands to collect a one-time fee of $5 million if UltraV reaches a valuation of $150 million. He is also getting a 10% valuation of the company.