Carat USA is the largest of the 50 unsecured creditors named in Relativity Media’s Chapter 11 bankruptcy filing, with the independent studio owing the media agency almost $37 million, Adweek reports.
Carat USA won media buying and planning responsibilities for Relativity Media back in October, 2010, following a review. Another agency in that review, Palisades MediaGroup, is also among the creditors named in the filing, with both companies listing the money they are owed by Relativity as trade debt.
Back in April, Relativity signed product-placement deals with Evian, Mondelez and Pathway Genomics which cut out the agency, promising to feature “products such as Evian and Oreos…not just in Relativity’s movie, TV and digital products, but also in celebrity limos, on the red carpet.” Now, with liabilities of as much as $1 billion, and assets of just $100 million to $500 million, the company is expected to auction off its film and TV assets.