Ryan Kavanaugh’s studio will be looking to emerge from bankruptcy next week.
Relativity Media is cheering the outcome of a vote by unsecured creditors to accept the RyanKavanaughstudio’s plan ofreorganization. The company hopes that it will lead the way to a judge’s approval on Feb. 1 and prime its way out of Chapter 11 bankruptcy.
The company didn’t detail the specific vote tally, but did announce that an “overwhelming percentage” had voted to accept.
Relativity Studios’ plan calls for the 2016 release of films includingThe Disappointments Room,Before I Wake,Kidnap,MastermindsandStrangers 2.
News of the thumbs-upfollows word from Relativity that it has securedmore than $100 million in exit financing fromMacquarie Bank, hedge-fund magnate Joseph Nicholas,AtorusInvestment Management,TomorrowVentures, Carat Global and VII Peaks Capital.
Relativity is still dealing with several objections to plan.
Netflixsays it doesn’t have assurance that if Relativity emerges from bankruptcy, the studio can meet commitments to deliver a minimum number of films to Netflix and ensure exclusivity. TheWeinstein Company has questioned the rejection of a settlement agreement concerningThe Crow, which Relativity has aimed to reboot in March. Other objectors includeParamount, Discovery,ColbeckCapital,CIT Bank andBrettRatner,who is upsetover not participating or not being givenfinancial participation on MTV’sCatfish.
But for all of these issues,Relativity has put some of its problems in the rear-view mirror. For example, at a hearing on Tuesday, there wasresolution on claimsconcerning Manchester, a subsidiary ofPaul Singer’s hedge fund, Elliott Management, an early backer ofRelativity. As part of a settlement,Manchesterwon’t be objecting to thereorganization plan either.