BEVERLY HILLS, Calif., Oct. 21, 2015 /PRNewswire/ — Relativity Media LLC (“Relativity”) today announced that a consortium of investors led by CEO and Chairman Ryan Kavanaugh have completed its acquisition of all Relativity’s assets. These transactions represent an important milestone toward the company’s emergence from chapter 11 with a significantly fortified balance sheet.

Under the terms of the transaction, the consortium acquired Relativity’s senior secured debt for $65 million in cash and $60 million in debt. As previously announced, the company has sold its unscripted television division for $125 million. As a next step, the consortium will shortly file a plan of reorganization with the U.S. Bankruptcy Court detailing the company’s capital structure and its strategy for long-term growth with film, digital, music, sports and branded entertainment. These transactions will effectively reduce the debt on Relativity’s balance sheet by approximately 90 percent.

Kavanaugh stated, “I am proud to say that we are moving quickly toward emerging from chapter 11 with a healthy balance sheet and an incredibly strong collection of assets, including Relativity Studios. We thank our partners and investors who have worked tirelessly to get us to this point, and our employees for their continued focus and commitment. Together, we will continue to build Relativity’s asset base to offer brands unique access to a fully integrated 360 degree content engine.”

The investor group, dubbed TJ, added: “Relativity’s 360 degree content engine is one which we have not seen in any other content company. The ways in which content is created and distributed, while incorporating and partnering with global brands, is highly unique. When that is paired with Relativity’s risk adjusted model, the scripted television platform and their joint ventures in India and China, it makes the future particularly exciting. We look forward to building the new Relativity and taking it to the level at which the company belongs.”

Additional information related to the proposed sale transaction and Relativity’s Chapter 11 filing is available on the Company’s website at www.relativitymedia.com/reorganization. Court filings and information about the claims process are available on a dedicated website administered by the Company’s claims agent, Donlin Recano & Company, at www.donlinrecano.com/relativity.

About Relativity
Relativity (relativitymedia.com) is a next-generation global media company engaged in multiple aspects of content production and distribution, including movies, scripted television, sports, digital and music. More than just a collection of entertainment-related businesses, Relativity is a content engine with the ability to leverage each of these business units, independently and together, to create content across all mediums, giving consumers what they want, when they want it.

Relativity Studios, the Company’s largest division, has produced, distributed or structured financing for more than 200 motion pictures, generating more than $17 billion in worldwide box-office revenue and earning 60 Oscar nominations. Relativity’s films include Oculus, Safe Haven, Act of Valor, Immortals, Limitless, and The Fighter.

Media Contacts:

David Shane
Relativity
(310) 724-7738
david.shane@relativitymedia.com

Justin Dini
Brunswick Group
(917) 216-7629
jdini@brunswickgroup.com

Bill Launder
Brunswick Group
(212) 333-3810
blaunder@brunswickgroup.com

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SOURCE Relativity Media LLC