UPDATE 7:39 p.m. EST 3/12/2016: Relativity Media just announced it has "filed the necessary documents and believes it has met the conditions required by Judge Wiles of the United States Bankruptcy Court for the Southern District of New York for the company to emerge from Chapter 11." The
release says that Relativity has submitted to the court, final documentation of "more than $100 million in new funding; concluded and signed its deal for Dana Brunetti to be President of Production; and concluded a deal with Trigger Street." As of this time, relevant documents have not been filed on the chapter 11 case docket.
Original Story 2:01 p.m. EST 3/10/2016:Relevant Document:Notice of Adjournment
According to sources with knowledge of the situation, Relativity Media’s bankruptcy plan will likely become effective as soon as this week, despite the adjournment of the debtors’ March 9 hearing that was rescheduled for March 31. A number of media organizations have reported recently that the plan was in jeopardy, including the
New York Post and
The Wall Street Journal.
The plan’s effective date was originally set for Feb. 17, but sources say that considering the various moving parts involved, that date was “aggressive” from the outset. At the hearing set for the effective date, Judge Michael Wiles of the U.S. Bankruptcy Court for the Southern District of New York said he “did not remember imposing any deadline on conditions to the plan,” in response to CIT Bank’s decision to reserve its rights as to unnamed intercreditor issues that may arise.
The debtors’ plan - which Judge Wiles
confirmed in an order on Feb. 8 - requires the debtor to execute "definitive documentation" regarding both exit funding and transactions between certain of the debtors and Trigger Street Productions, and/or the employment and other transactions among certain of the debtors, Kevin Spacey and Dana Brunetti. Despite media speculation that the
adjournment of the March 9 hearing for March 31 was a sign of trouble for the plan, the achievement of the conditions precedent is not in jeopardy, sources close to the situation say. The March 31 hearing appears to deal with contract issues related to the plan, according to the
agenda.