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Ryan Kavanaugh’s Relativity Media: What Happens Now?

4 January 2016 5:25 PM, PST | Variety - Film News | See recent Variety - Film News news »

After a tumultuous year for Relativity Media that saw the independent company fall into Chapter 11 bankruptcy in late July, founder Ryan Kavanaugh is facing daunting challenges to reinvigorate his operation as 2016 gets underway. Following a series of lackluster films, the retreat of financial partners and accusations of fraud from a couple of one-time business allies, Relativity is looking at a tough road to recovery. Hollywood watchers are wondering whether the 41-year-old entrepreneur can right the ship and return the company to being a full-functioning entertainment enterprise. Here are 10 questions to help better understand whether Kavanaugh and his beleaguered company can stage a successful comeback this year.

Where is the money?

The reorganization plan Kavanaugh submitted to U.S. Bankruptcy Court Judge Michael Wiles calls for $100 million in new equity investment. But as the new year dawned, Relativity’s disclosure statements still left a big blank as to the source of that crucial money. »

- James Rainey

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