Relativity Media receives authorization to extend DIP loan to Oct. 27

By Mark Reccek

Bethlehem, Pa., Oct. 23 – Relativity Media LLC received court approval to extend the maturity date of its debtor-in-possession loan to Oct. 27, according to an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of New York.

The loan was initially scheduled to mature on Oct. 22.

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% Libor floor.

The order said the company is permitted to use cash collateral through Oct. 27.

The extension “is necessary to avoid immediate and irreparable harm to the debtors and otherwise is fair and reasonable and in the best interests of the debtors, their creditors, their estates and their equity holders, and is essential for the continued operation of the debtors’ business,” the order added.

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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