Relativity Media, the mini-major Hollywood studio run by Ryan Kavanaugh, has officially filed for Chapter 11 bankruptcy protection. This leaves many of the company’s scheduled films in a state of limbo, but at least the long-troubled Jane Got A Gun has been saved.
There had been reports in recent weeks that Relativity was getting into trouble with mounting debts, which lead to layoffs and rescheduled film releases. Deadline reports that Relativity finally filed for Chapter 11 in Manhattan today.
“Our board and management team explored a variety of options to refinance Relativity’s debt, and we ultimately determined that the protection afforded by a court-supervised reorganization process will provide additional time and structure to achieve our financial and strategic objectives,” Kavanaugh said today.
The company is hoping that a sale of its businesses can be completed by October. However, Variety reports that some divisions will not be sold, including RElativity EuropaCorp Distribution, a venture with EuropaCorp. In the meantime, Relativity is hoping to secure $45 million in interim financing to keep working as the bankruptcy proceedings continue.
“Relativity continues to pursue its mission as a next-generation global media company, and we remain firmly committed to our film and television businesses,” Kavanaugh said. “The actions we are announcing today will protect our valuable franchise and allow us to emerge as a stronger, more focused company.”
It’s been reported that the company is as much as $320 million in debt.
Relativity is only 11 years old. It still hopes to release Masterminds with Kristen Wiig in October and Halle Berry’s Kidnap in February. Other films will likely be sold off.
Probably the most interesting film that almost got lost in this mess is Jane Got A Gun, which was going to be distributed by Relativity in collaboration with The Weinstein Company. The most recent release date for the long-delayed, long-troubled Western was Sept. 4. However, with no trailer or any other promotion for the film, that isn’t going to happen.
Deadline reported yesterday that the film’s main financier, attorney David Boies, has already pulled the film from Relativity’s hands. It’s not clear if TWC will take over complete distribution of the Western, but it’s looking like the picture could be released in the first quarter of 2016.
Jane has been through so much - from a carousel of leading men for Portman to a director not showing up on the first day of shooting - that getting out of Relativity’s hands is a big win.
image of ‘Jane Got A Gun’ star Natalie Portman courtesy of INFphoto.com