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Relativity committee objects to FTI payment claims amid investigation
By Caroline Salls
Pittsburgh, Jan. 8 – Relativity Media LLC’s official committee of unsecured creditors objected to FTI Consulting Inc.’s claims for payment for services provided to the company, citing an investigation by a special committee of Relativity’s board of directors and the fact that the committee has not had an opportunity to conduct its own inquiry, according to a company news release.
Specifically, Relativity said it charged that FTI executed several business decisions without obtaining appropriate advice and consent from the board, including passing on an offer for the sale of the company’s fashion division and various employment decisions.
The committee argued that FTI’s request for payment is an “unnecessary distraction,” and all parties should be focused on confirmation of Relativity’s plan of reorganization.
“From the very beginning of Relativity’s reorganization, the committee has been a strong supporter of Relativity’s efforts to reorganize, watching our back to ensure that no party could be successful in pursuing actions that would threaten the company,” Relativity chairman and chief executive officer Ryan Kavanaugh said in the release.
“We look forward to continuing to work with the committee to emerge from Chapter 11 on a timely basis and not allowing any party to utilize the bankruptcy process to leverage the company for their own benefit.”
As previously reported, committee also recently formally stated its support for Relativity’s plan of reorganization and recommended that all unsecured creditors vote to accept the plan. The plan confirmation hearing is scheduled for Feb. 1.
Relativity Media is a media company based in Beverly Hills, Calif., that filed for bankruptcy on July 30 in the U.S. Bankruptcy Court for the Southern District of New York. The Chapter 11 case number is 15-11989.
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