Ryan coming out
Relativity escapes Chap. 11 — almost
A bankruptcy judge on Tuesday confirmed Relativity Media’s plan of reorganization — but told the embattled Hollywood mini-studio it won’t be effective until it provides commitments for additional cash funding.
In addition, Relativity Chief Executive Ryan Kavanaugh will have to provide Judge Michael Wiles with details about having Kevin Spacey and his production partner take over Relativity’s movie operations before it can fully emerge from reorganization.
Judge Wiles appeared skeptical that Kavanaugh could deliver a term loan of $60 million and vendor financing of $20 million — as detailed in the studio’s reor ganization plan.
“I want the term loan and vendor financing nailed down,” Wiles said during the second of backtoback marathon sessions in a downtown Manhattan courthouse.
Netflix, which has a distribution deal with the studio, was the last creditor with objections to the plan — but those were quickly resolved without the court voiding its Relativity deal.
Instead, Netflix won’t have to pay for undelivered movies.
Before confirming the plan, the judge left no doubt he would cast a critical eye before signing off on agreedupon conditions.
Alternative funding to the anticipated $80 million would be acceptable, the judge said, but only if “substantially similar” to that al ready promised.
As for having Spacey and partner Dana Brunetti run the studio, the judge said he’d be willing to protect their need for confidentiality through private interviews.
“Their retention must be locked in and verified at terms subject to my approval,” he said.
Relativity has until Feb. 17 to meet the court’s conditions.