Privately-held Relativity Media (d/b/a Relativity Fashion and M3 Relativity) and two affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of New York, lead case number 18-11358.
The Company, which engages in content production and distribution, is represented by Carey D. Schreiber of Winston & Strawn. The Company concurrently announced its entry into an agreement to sell substantially all of its assets to UltraV Holdings, a joint venture among funds managed by Sound Point Capital Management and RMRM Holdings (RMRM). RMRM is led by David Robbins, former Chairman of Bally Technologies, Lex Miron, veteran media industry advisor and Larry Robbins, seasoned media industry executive. UltraV intends to provide sufficient capital to resume Relativity Media’s operations and the development and distribution of original content through existing and future platforms, including the current distribution agreement Relativity Media has with Netflix.
In order to facilitate the sale and address certain legacy liabilities of Relativity Media, the parties intend to implement the transaction though a section 363 sale under Chapter 11.The sale to UltraV will be subject to Court approval and other closing conditions and is expected to close in the next 45 to 60 days. Miron comments, “We are committed to putting the necessary resources into the business so that we can attract and retain new talent, create outstanding original film, television and digital content and distribute that content across multiple platforms.” Ryan Kavanaugh, founder of Relativity Media, comments, “The transaction will result in a fresh start for the company, and it turns Relativity over to owners who have a sincere appreciation for the business, the art and the long term needs of the industry. UltraV will now be focused on completing the sale process as expeditiously as possible and ensuring that once the transaction is finalized Relativity Media can hit the ground running with appropriate financial backing and a strong leadership team.”
The Company emerged from a previous bankruptcy filing in April 2016. Relativity Media’s current Chapter 11 petition indicates assets greater than $100 million.
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