The Company engages in media content production and distribution in the United States and internationally. However, Variety reports that some divisions will not be sold, including RElativity EuropaCorp Distribution, a venture with EuropaCorp.
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According to documents filed with the Court, “The Debtors experienced severe liquidity constraints and increasing limitations imposed by the Forbearance Agreements and the new debt issuances”.
Kavanaugh had been scrambling in recent weeks to come up with the money that would pay off debt owed to creditors such as Anchorage Capital Group but ultimately could not keep the lenders at bay. “We intend to move through the Chapter 11 process as quickly as possible”. Not shockingly, he appears to have been nearly entirely wrong on that front, with far more failures or out-and-out disasters to the company’s credit than even modest successes (like the ’80s comedy Take Me Home Tonight with Topher Grace and Anna Faris that made less than $7 million in America).
The job cuts are expected to hit hardest in the company’s digital, fashion and education units, all relatively new operations that are said to be a drag on the bottom line of the operation, which is saddled with $320 million in debt that it is struggling to refinance, said the source, who declined to be named discussing sensitive internal communications. The company is restructuring some of its businesses, and 75 full-time positions have been eliminated. “The actions we are announcing today will protect our valuable franchise and allow us to emerge as a stronger, more focused company”, Ryan Kavanaugh, the company’s chief executive officer, said in a statement Thursday. Ryan Kavanaugh had this to say in an additional statement. Big television and film studios might try to scoop up pieces of Relativity, or even specific TV or film projects. As previously announced, the Company plans to release Masterminds and Kidnap. “We thought it would make sense for both parties to get the film back and move it forward with someone else”. In its television business, Limitless, which is based on the Relativity movie starring Bradley Cooper, is slated to debut on CBS’ primetime lineup this fall.
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The company also made MTV show Catfish, and said it would press ahead with a number of global versions of the show as well as a sequel called Truce.
