Relativity Media granted interim access to another $2.5 million of DIP loan

By Mark Reccek

Bethlehem, Pa., Aug. 14 – Relativity Media LLC received interim access to an additional $2.5 million of debtor-in-possession financing, according to an order issued Friday with the U.S. Bankruptcy Court for the Southern District of New York.

The company initially was granted access to $9.5 million of the proposed $45 million facility last month.

Cortland Capital Market Services LLC is the administrative and collateral agent for the financing, which is being provided by a group of Relativity’s pre-bankruptcy lenders.

Interest is Libor plus 950 basis points with a 1% floor.

The facility will mature on the earliest of Oct. 2, 2015, 30 days after entry of the interim financing order if a final order has not been entered, the effective date or substantial consummation of a plan of reorganization or liquidation, the completion of a sale of the loan parties’ assets, conversion of the Chapter 11 case and acceleration of the loans and obligations.

A final hearing on the matter is scheduled for Aug. 25.

Relativity Media LLC is a global media company based in Beverly Hills, Calif., that filed for bankruptcy on July 30. The Chapter 11 case number is 15-11989.

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