Relativity Media closes on $125 million sale of television business

By Mark Reccek

Bethlehem, Pa., Oct. 20 – Relativity Media LLC closed on the sale of its television business for $125 million, according to a Tuesday press release.

An investor group led by company chairman and chief executive officer Ryan Kavanaugh and made up of Anchorage Capital Group LLC, Falcon Investment Advisors LLC and Luxor Capital Group LP was the purchaser. The group was previously declared the winning bidder for the business.

“This simply means that Relativity anticipates that it will emerge with all of its pre-Chapter 11 assets and operating businesses, having sold the unscripted television business only, with almost 90% of its debt off of its balance sheet,” the release said.

The financial structure of the transaction has changed, the release stated, but the company expects the court to ratify the transaction within the next two to three days.

Relativity also said it plans to file a plan of reorganization detailing the company’s capital structure and its strategy for long-term growth with film, digital, music, sports and branded entertainment, in an effort to build the company asset base to offer unique access to a fully integrated 360 degree content engine.

The investor group said it would commit $75 million of capital to the television business in order to invest in its future growth.

A rebranding of the operation is planned for the next 90 days.

Relativity is a 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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