FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
Skip Navigation LinksHome / News / Read News


Relativity Receives Approval for First Day Motions

August 03, 2015, 07:06 AM
Filed Under: Bankruptcy

Relativity Media LLC ("Relativity") today announced that the U.S. Bankruptcy Court for the Southern District of New York (the "Court") has entered orders approving the Company's First Day Motions to allow Relativity to maintain its business operations throughout the confirmation process.

The Court authorized Relativity to continue the payment of wages, salaries, employee benefits and other processes important to maintain business continuity during the reorganization period. The Court also entered orders approving Relativity's request to use $9.5 million in interim funding prior to an August 14th hearing on the $45 million in debtor-in-possession ("DIP") financing provided by a group of the company's prepetition lenders.

"The ability to minimize the impact of this process on our employees and operations is among our most important priorities, and we are pleased that the Court has ordered these motions, which will allow us to preserve value for our stakeholders," said Ryan Kavanaugh, Chairman and CEO of Relativity. "The orders the Court entered today are an important milestone in our reorganization.  I look forward to building on this momentum to emerge as a stronger company."

Relativity previously announced on July 30 that it had elected to complete its reorganization through a voluntary Chapter 11 filing in order to achieve the Company's financial and strategic objectives.

Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.