Relativity Media gets approval to sell company for $250 million

By Mark Reccek

Bethlehem, Pa., Oct. 7 – Relativity Media LLC obtained authorization to sell the company to RM Bidder LLC for $250 million, according to an order filed Tuesday with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, Relativity entered into an agreement with RM Bidder, an entity formed and owned by some of the company’s pre-bankruptcy lenders, under which RM will acquire substantially all of the assets of Relativity.

Also, the purchase price includes the discharge in full of all amounts outstanding and obligations under the debtor-in-possession loans, the discharge in full of all amounts outstanding and obligations under term A loans, the discharge of a portion of the principal amount of debt and interest accrued on the closing date plus any penalty or pre-payment fees owned under term B loans and the assumption of specified liabilities.

“The debtors have demonstrated a sufficient basis and compelling circumstances requiring them to enter into the APA [asset purchase agreement], assume and assign to the buyer the assumed contracts and leases and sell the acquired assets,” the order said. “Such actions are an appropriate exercise of the debtors’ business judgment and in the best interests of the debtors, their estates and their creditors.”

Relativity Media 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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