As Relativity Media all but finalized a deal to sell its TV division for $125 million Tuesday, the studio’s CEO, Ryan Kavanaugh, sent an email to his staff, saying that he has received preliminary approval to keep most of the studio’s remaining assets. Kavanaugh wrote to staffers: “We anticipate that we will emerge from Chapter 11 with all of our assets and operating businesses (we sold only the unscripted television business), with 90 percent reduction of debt.” (THR)
Of the nine prior objections to the deal, all but one were resolved by the time of the Tuesday hearing, according to attorneys addressing U.S. Bankruptcy Court Judge Michael Wiles. The outstanding issue was adjourned, allowing the sale of the TV business—which includes CBS’ Limitless and MTV’s Catfish—to be closed Tuesday. Anchorage Capital, Luxor Capital Falcon Investment Advisors—three hedge funds collectively owed more than $360 million by Relativity—as well as Colbeck Capital are among the new owners, paying $125 million for the business with the plan to reinvest and rename the company. (Variety)
But a financing agreement to take care of another $125 million loan to the lenders has hit some turbulance. CEO Ryan Kavanaugh and his financing partners—VII Peaks Capital, investor Joseph Nicholas, and billionaire Ron Burkle’s OA3—originally planned to pay $60 million in cash and offer a $30 million note in return for that loan. Now it seems that the group wants to reduce the cash amount to $30 million and raise the borrowed amount to $60 million. (Deadline)