Post by The Ultimate Nullifier on Aug 12, 2015 9:52:18 GMT -6
variety.com/2015/film/news/relativity-media-lender-seizing-masterminds-somnia-non-payment-1201568470/
Relativity Media Lender Moves to Seize Four Films Because of Non-Payment
A film distribution lender owed $85 million by Relativity Media has asked the U.S. Bankruptcy Court in Manhattan to allow it to seize four unreleased Relativity films so that it can try to push the pictures out to market so it can recoup on the overdue loans.
In a motion filed Wednesday, RKA Film Financing asked the court to remove a stay on actions against the bankrupt Beverly Hills studio so that it can take control of the films — “Masterminds,” “Somnia,” “Disappointments Room” and “Kidnap.”
The filing says that the loans it made to Relativity include a provision that allows RKA to take films as collateral if it does not get paid. RKA claims that its lien on the films is “senior to the rights of other lenders,” including the hedge funds that are now driving the bankruptcy and attempting a quick liquidation sale of the failed studio.
RKA previously filed suit in Supreme Court for the State of New York, accusing Relativity CEO Ryan Kavanaugh of fraud. That earlier action called Kavanaugh a “con man” and said his firm had diverted millions of dollars, designated for the release of films, for ongoing operating expenses at the Beverly Hills-based entertainment concern.
The motion by RKA said it has made repeated attempts to get assurances that its loans would be repaid, but to no avail. The filing by the firm of Latham & Watkins accuses Relativity of “vague response and obfuscation.”
It says that RKA should be given some other adequate form of collateral equal in value to the unreleased films or “the right to enter [Relativity’s] premises and take possession of the unreleased film collateral.” the motion further state that RKA should then be allowed to search for and hire another studio to release the films in the U.S.
Relativity Media Lender Moves to Seize Four Films Because of Non-Payment
A film distribution lender owed $85 million by Relativity Media has asked the U.S. Bankruptcy Court in Manhattan to allow it to seize four unreleased Relativity films so that it can try to push the pictures out to market so it can recoup on the overdue loans.
In a motion filed Wednesday, RKA Film Financing asked the court to remove a stay on actions against the bankrupt Beverly Hills studio so that it can take control of the films — “Masterminds,” “Somnia,” “Disappointments Room” and “Kidnap.”
The filing says that the loans it made to Relativity include a provision that allows RKA to take films as collateral if it does not get paid. RKA claims that its lien on the films is “senior to the rights of other lenders,” including the hedge funds that are now driving the bankruptcy and attempting a quick liquidation sale of the failed studio.
RKA previously filed suit in Supreme Court for the State of New York, accusing Relativity CEO Ryan Kavanaugh of fraud. That earlier action called Kavanaugh a “con man” and said his firm had diverted millions of dollars, designated for the release of films, for ongoing operating expenses at the Beverly Hills-based entertainment concern.
The motion by RKA said it has made repeated attempts to get assurances that its loans would be repaid, but to no avail. The filing by the firm of Latham & Watkins accuses Relativity of “vague response and obfuscation.”
It says that RKA should be given some other adequate form of collateral equal in value to the unreleased films or “the right to enter [Relativity’s] premises and take possession of the unreleased film collateral.” the motion further state that RKA should then be allowed to search for and hire another studio to release the films in the U.S.