Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Media

Relativity Media Chapter 11 Petition Filed

Privately-held Relativity Media and certain of its subsidiaries filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of New York, lead case number 15-11989 (Relativity Fashion). The Company, which engages in media content production and distribution in the United States and internationally, is represented by Craig A. Wolfe of Sheppard Mullin Richter & Hampton. The Company has secured a commitment for $45 million in new funding to help meet operational during the reorganization. Relativity Media also announced that it is pursuing a sale process for the Company and has entered into an agreement with RM Bidder, an entity formed and owned by certain of its pre-petition lenders. Under the agreement, RM Bidder will acquire substantially all of the assets of Relativity Media, subject to Court approval and certain other conditions including an auction process. RM Bidder's bid will serve as a starting point for a sale and auction process that will be conducted by Blackstone Group and FTI Consulting, led by Dr. Brian G. Kushner, the newly-appointed chief restructuring officer, and supervised by the Court. Ryan Kavanaugh will continue to serve as chairman of the board and C.E.O. The auction process is expected to conclude with a sale closing in early October 2015. Relativity Sports, Relativity EuropaCorp Distribution and Relativity Education are not part of the sale process and were not included in the filing. As part of the reorganization, the Company is restructuring some of its businesses and 75 full time positions have been eliminated. In addition, Relativity Media will wind down M3 Relativity, its fashion division. Relativity Media's Chapter 11 petition indicates $559,973,000 in total assets.

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