Relativity Media has been put up for a bankruptcy auction that the company claims will draw excitement and lively bidding, but bankers, hedge fund operators and potential bidders who have examined the failed mini-studio said they expect the auction to fall flat.
Two bankers and a hedge fund manager who are familiar with the company said they expect no one will bid more than the $250 million stalking horse bid already put forward by senior creditors who pushed for the sale. While there is some interest from strategic buyers in Relativity’s television assets, a movie studio with high overhead and a paltry library is seen as a potential liability.
“There is no there there,” said one banker who had studied Relativity. “I don’t think at the end of the day anyone will match the $250 million stalking horse bid. There is something in the TV. But there is no film library to speak of, »
- Brent Lang and James Rainey
There have been legal filings and lawsuits over unpaid bills, fights over the release of upcoming films, such as the Zach Galifianakis comedy “Masterminds” and the Halle Berry thriller “Kidnapped,” and questions about who will buy the financially distressed company in a planned October auction. The high-profile failure has inspired a wave of negative stories about the management of Relativity and founder Ryan Kavanaugh.
In an exclusive interview with Variety, Brian Kushner, the Fti Consulting managing director who was appointed the studio’s chief restructuring officer, and C.J. Brown, the Blackstone senior managing director who is serving as Relativity’s investment banker leading its auction, expressed confidence that the media attention will boost interest in the studio. The company already has »
- Brent Lang
A major Relativity Media creditor is asking for the court to postpone a hearing on a loan the company needs to continue operating through bankruptcy.
In court filings, Manchester Securities, a subsidiary of the New York-based hedge fund Elliott Associates, accuses Relativity of having “violated basic notions of due process, fundamental fairness” by not sharing information about the film and television company’s valuation and a deposition from its founder Ryan Kavanaugh. It would like the court to push a hearing on whether Relativity can receive $45 million in debtor-in-possession financing from Tuesday until Friday.
Manchester is one of Relativity’s biggest lenders. It is owed $137 million, according to the company’s initial bankruptcy filing. Relativity has liabilities of almost $1.2 billion and assets with a book value of just under $560 million. The company has produced such films as “The Immortals” and “Act of Valor,” and backs television programs like “Catfish: The TV Show »
- Brent Lang
The hedge funds pushing for a quick auction of Relativity Media have granted additional concessions — including a better chance of recovery for union members and lenders who financed film releases — in hopes that other creditors in the complex bankruptcy action will not try to slow down an Oct. 1 sale of the insolvent company.
The senior lenders — Anchorage Capital Group, Luxor Capital Group and Falcon Investment Advisors — said in a filing Friday that loans to Rka Film Financing, Macquarie Investment U.S. and others tied to promotion for film releases “must be paid in full in cash” before those films can be sold as part of the company auction. The filing in U.S. Bankruptcy Court in New York also said that the terms for sale of the company must be modified to assure payment of residuals to guild members.
In addition, the lending group that hopes for a September auction »
- James Rainey
The copyright holder behind 2012 Navy Seal drama Act Of Valor wants to be sure its property doesn’t get lost in the Relativity bankruptcy shuffle. Responding to a motion about the bidding process on Relativity’s sale, Iatm said it has an issue with language that says the winning bidder takes control of contracts with no obligation to liens. The hit movie was licensed to Relativity, and an account is set up for related revenue. Iatm’s slice of the pie is protected with a… »
The licensor of the 2012 surprise hit Act of Valor has come forward with some issues pertaining to the proposed auction of Relativity Media next month. Iatm is copyright holder on the film about an elite team of Navy SEALs who embark on a covert mission to recover a kidnapped CIA agent. Set up by the Bandito Brothers production company, Iatm licensed Act of Valor to Ryan Kavanaugh's studio before it went on to gross $70 million at the box office despite no big stars and lukewarm reviews. The film has been identified as "one of the more important property
- Eriq Gardner
NBC Universal, Cinedigm and media buyer Carat USA are among the companies that have been appointed to a committee of unsecured creditors as part of Relativity Media’s ongoing bankruptcy proceedings.
The studio behind “Limitless” and “Act of Valor” filed for Chapter 11 protection last week, citing liabilities of $1.2 billion and assets of $560 million.
Carat is the unsecured creditor with the most to lose in Relativity’s bankruptcy. It has a $36.8 million trade claim against the company related to media buys for its films. Other members of the committee include production and advertising companies such as Technicolor, Allied Advertising Limited Partnership, Comen VFX and Create Advertising Group. A notice of appointment was made Friday by the U.S. trustee.
The creditors are tasked with monitoring the progress of a bankruptcy case and trying to protect the interest of all the companies that are owed money but don’t have any assurance of payment. »
- Brent Lang
Relativity Media — the digital-age entertainment company that claimed clever financing and data analysis could help it unlock the secret to box office riches — filed for bankruptcy protection Thursday against a swarm of disgruntled investors and other creditors. The 11-year-old company that founder Ryan Kavanaugh had styled as a “next-generation global media company” will be sold at auction, a statement from the company said.
The upcoming sale will center on the enterprise’s film and television units. Left outside of the insolvency action are Relativity Sports; Relativity EuropaCorp Distribution, a joint venture with the European film operator; and Relativity Education. All those units will continue on as independent concerns. The company’s fashion operation, M3/Relativity, was shut down this week and its employees laid off Wednesday as part of a pinkslipping of 75 employees.
Kavanaugh and his board proposed the immediate auction of the company, which stated liabilities of up to $1 billion, »
- James Rainey and Brent Lang
Jason Momoa is super stoked to be working with James Wan on Aquaman. I'm sure grossing $1.4 billion Usd and counting on Fast & Furious 7 certainly helped Wan raise his profile and officially land the directing gig after being rumored for months. Wan will also work with Kurt Johnstad (300, Act of Valor) on developing the script. Reports state that though Wan signed on to helm both Robotech and Aquaman at the same time, Wan will tackle Aquaman first after completing work on The Conjuring 2: The Endfield Experiment . Wan should complete his work on The Conjuring 2 by Spring 2016, giving him plenty of time to tackle Aquaman for its July 27, 2018 release date. Game on. Super stoked Aloha AC A photo posted by Jason Momoa (@prideofgypsies) on Jun 4, 2015 at 2:54pm Pdt Of course, before Momoa stars as Arthur Curry aka Aquaman in a solo adventure, audiences will »
A group of unnamed lenders behind Relativity Media has agreed to extend a May 31 deadline to allow the Hollywood mini-studio to postpone a critical debt payment, the company said Monday.
The agreement comes after long-simmering reports of financial strains at the company burst into public view late last month, when Relativity accused one of its financial backers of unfairly criticizing its economic stability.
The agreement with its lenders gives Relativity an unspecified amount of time to make the payment that was due at the end of May. The film company had previously said that a new financial arrangements had already been made and that the deadline was not of concern. But “the complexity of the transaction required additional time for us to close it, which this agreement provides,” said a source close to the company.
“Today the company and its lenders have entered into a formal agreement that allows Relativity »
- James Rainey
Long-simmering reports of financial strains at Relativity Media broke into the open Friday when the company accused one of its backers of privately badmouthing its economic condition in an attempt to take control of the mini-studio.
Relativity said in a statement that New York-based Colbeck Capital had engaged in a “play…to try to seize control of Relativity by trying to spread false rumors about the state of the company.” Relativity chief executive Ryan Kavanaugh remains “fully in control,” the statement said.
The film and television company also said that Colbeck’s two members on the Relativity board “will be removed from the board next week.”
The New York Post reported early Friday that Kavanaugh needed to raise $200 million by the end of the month and risked losing control of his company. Relativity denied that, issuing a statement that said: “Under Ryan Kavanaugh’s leadership, Relativity has successfully recapitalized its »
- James Rainey
Are there any directors hotter at the moment than Chad Stahelski and David Leitch? The duo behind "John Wick" have "Bloodshot" set up over at Sony, are rumored for a DC Comics project, and officially have "John Wick 2" in the works. Now, they've got yet another gig brewing, with a big star attached. Read More: Review: 'John Wick' Is A B-Movie Pleasure, Anchored By Keanu Reeves' Raw Charisma Deadline reports that Charlize Theron will star in "The Coldest City," with a movie set up at Focus Features, everything's raring to go for a fall shoot. Kurt Johnstad (both "300" movies, "Act Of Valor") has adapted the graphic novel by Antony Johnston which is set just before the fall of the Berlin Wall and follows a super spy who springs into action when an MI6 agent is killed. Here's the book synopsis: November 1989. Communism is collapsing, and soon »
- Kevin Jagernauth
If she survives George Miller’s barren Aussie wasteland in Mad Max: Fury Road, Charlize Theron will star in the new Cold War–era spy film from John Wick co-directors Chad Stahelski and David Leitch. ScreenCrush reports that the dynamic duo responsible for the gorgeously gory action flick will turn Anthony Johnston's novel The Coldest City into another gorgeous, but presumably less gory, flick. Kurt Johnstead (300, Act of Valor, the upcoming Aquaman) is writing the screenplay.As our own Bilge Ebiri eloquently puts it, John Wick is a violent, violent, violent film, but oh so beautiful. The surprise hit, which stars the ageless humanitarian known as Keanu Reeves and, for a few brief minutes, an adorable puppy named Daisy, features some of the cleanest editing and most carefully calculated carnage to splatter the screen in recent years. The title character (Reeves) goes on an ass-kicking spree when some Russian »
- Greg Cwik
There are some excellent videogame-influenced movies out there. They're just not based on videogames...
No, no, this isn’t a list of the worst movies ever made. It’s a choice selection of films from the last 20 years that have been based on videogames. And as you can see, it makes for grim reading. But why is that?
But before we get into that, some brief history.
“Videogames can never be art.”
Despite the huge success of the gaming industry, which is now the most profitable form of entertainment, videogames are still seen an inferior art form. The late, great Roger Ebert famously kicked a beehive in 2010 when he proclaimed that “Videogames can never be art.”, Long story short, »
The plot details are being kept under wraps, with insiders describing the super-secret concept only as a big sci-fi action idea. The hope is that the project can turn into a potential franchise.
Tolmach would produce through his production banner, with Johnstad penning the script.
Tolmach’s executive VP of production, David Manpearl, brought the pitch to Tolmach who, like so many producers in town, wanted to work with Johnstad following his success on “Act of Valor” and “300: Rise of an Empire.” The two then took the pitch to Columbia Pictures president of production Michael De Luca and senior VP of production Jonathan Kadin, who were so excited by the idea that they bought the pitch in the room.
De Luca has been »
- Justin Kroll
Marvel Studios & Konami
The video game medium is frequently said to owe a lot to cinema, given how so many games attempt to evoke the style of a classic Hollywood movie: after all, is Uncharted really anything more than a modern Indiana Jones? However, as gaming has become a more socially acceptable and respected endeavour over the last decade, filmmakers have started taking it more seriously too, and as a result, some of Hollywood’s biggest movies appear to have drawn inspiration from classic games.
Once upon a time, the term “video game-esque” was used to refer to movies in only a strictly negative sense, but that simply isn’t true anymore. These 12 movies are either stylistically or thematically indebted to a famous video game, whether the creators themselves care to admit it or not. And no, the likes of Scott Pilgrim vs. The World and Act Of Valor won’t be appearing here, »
- Jack Pooley
Sunday, February 22, 2015 ratings — New episodes: 60 Minutes. Specials: Oscars Opening Ceremony: Live from the Red Carpet, Act of Valor (movie) and 87th Annual Academy Awards. Sports: PGA Northern Trust Open. Reruns: Dateline NBC, Chicago Fire, Law & Order: Special Victims Unit, Chicago Pd, The Simpsons, Brooklyn Nine-Nine, Family Guy, and Bob's Burgers.
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Fast National ratings for Sunday, February 22, 2015. Whether it was lack of interest in the nominated films, lack of interest in host Neil Patrick Harris or a third thing that could cause disinterest, overnight ratings for the 2015 Academy Awards were down double-digits from last year's telecast in most measures. Of course, ABC's Oscars coverage still dominated Sunday, which featured only low-rated installments of "60 Minutes" and "Dateline" as new competition. Remember the usual provisos: These are time period-specific numbers for ABC and *not* numbers for the Academy Awards telecast. On the East Coast, the show went over an hour over outside of primetime. On the West Coast, the first 90 minutes of the show were outside of Sunday primetime. The actual numbers for the Oscars will adjust up. They always do. Stay tuned for those real Oscars ratings a bit later. On to the numbers... Among adults 18-49, ABC averaged an 8.8 rating for Sunday night, »
- Daniel Fienberg
Coming off a massive holiday weekend, Fifty Shades of Grey plummeted 74 percent in its second outing. Still, the movie easily held on the top spot this weekend with $22.3 million.Among the new releases, McFarland, USA and The Duff did solid business, while Hot Tub Time Machine 2 flopped.Fifty Shades of Grey's 74 percent drop is steeper than the second weekend declines for The Fault in our Stars, Valentine's Day, and all five Twilight movies. It's the second-biggest decline ever for a movie playing at over 3,000 locations; the worst belongs to the Friday the 13th remake, which fell 80 percent on this same weekend in 2009.Adapted from an immensely popular book and opening on Valentine's Day weekend, Fifty Shades of Grey was always going to be fairly front-loaded. Still, the movie's horrible reviews (25 percent on Rotten Tomatoes) and weak word-of-mouth ("C+" CinemaScore) surely contributed in some way.Fifty Shades has now earned $129.2 million, »
- Ray Subers <firstname.lastname@example.org>
Fifty Shades of Grey held on to first place at the international box office this weekend with $68.1 million.That's off 56 percent from last weekend, which is a far better that the movie's hold in the U.S. (down 73 percent). To date, it's already earned $280.5 million, which is ahead of Sex and the City and the first Twilight ($263 million and $200 million, respectively).In the next day or two, it will pass the first Hunger Games movie ($283 million). With South Korea on the way, Fifty Shades could theoretically reach $400 million overseas.Playing in 53 markets, Kingsman: The Secret Service earned $32.8 million this weekend, which brings its total to $86.4 million. Thanks to the Chinese New Year holiday, the movie jumped 86 percent to $8.9 million in South Korea; it's already earned $17.8 million there, which puts it ahead of all Bond and Bourne movies.It opened to $3.5 million in France*a very solid result*and scored a »
- Ray Subers <email@example.com>
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