BEVERLY HILLS, Calif.,
Oct. 4, 2015 /PRNewswire/
-- Relativity Media LLC ("Relativity") today announced that a
consortium of investors led by CEO and Chairman Ryan Kavanaugh (referred to as "TJ Group") have
reached an agreement to acquire all of Relativity's assets except
the Relativity Television business. The consortium will shortly
file a plan of reorganization.
The transaction will create a path for Relativity to emerge from
bankruptcy with a significantly fortified balance sheet and
virtually no debt which positions the company for long-term growth.
Kavanaugh will remain Chairman and CEO.
"My passion for Relativity is the same today as it was on the
day I founded it," commented Kavanaugh. "I want to thank our
employees for their continued focus and dedication throughout the
Chapter 11 process. I look forward to working with my partners and
with Relativity's executive team to build and take the company to
the next level, continuing its 360 degree content engine approach
at a time when content has never before been more valuable."
Relativity expects to quickly move forward with previously
announced content projects and other business opportunities, and
will in due course announce official release dates for movies
including Masterminds, The Disappointments Room, Before I
Wake, The Crow and Kidnap which were postponed
for release during the bankruptcy process.
As part of the transaction, Relativity has agreed to sell the
television division, led by Tom
Forman of Relativity, for $125
million.
The Bankruptcy Court hearing is scheduled for October 5, 2015, and the closing date of the
transaction is scheduled for October 20,
2015. All entities will operate business as usual until the
closing of the transactions.
Relativity will emerge post-Chapter 11 with only $30 million in debt, a significant library and
its business units fully intact. The divisions include: Relativity
Studios, Relativity Digital Studios, Madvine, Relativity Music, and
the company's stake in Relativity EuropaCorp Distribution,
Relativity Sports, and Relativity Education. All of Relativity's
divisions will partner to create compelling original content and
work closely with brands to navigate the ever-changing advertising
landscape in both traditional and digital mediums.
Mr. Van C. Durrer II of Skadden,
Arps, Slate, Meagher & Flom LLP, Kavanaugh's personal counsel,
was an integral part in the negotiations and closing the
transaction. Jones Day and The
Blackstone Group represented and advised the company in the sale
process.
Media Contacts:
David Shane
Relativity
(310) 601-0640 cell
david.shane@relativitymedia.com
Justin Dini
Brunswick Group
(917) 216-7629 cell
jdini@brunswickgroup.com
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SOURCE Relativity Media LLC