Milbank, Tweed, Hadley & McCloy LLP has represented an ad hoc group of holders of Relativity Media LLC’s (“Relativity”) more than $600 million of secured Term and DIP Loans (“Secured Lenders”) in the Hollywood film studio’s successful chapter 11 reorganization.
Beginning in April 2015 the Secured Lenders and Relativity’s other creditors began negotiating with Relativity regarding a restructuring of Relativity’s debt. Relativity filed for bankruptcy on July 30, 2015 and the TLA/TLB Holders provided DIP Financing. During the bankruptcy, the Secured Lenders credit bid a portion of the secured debt to purchase the TV Business from Relativity via a 363 sale and sold some of their debt to third parties, in connection with a plan term sheet. The TV Business is now known as Critical Content. Relativity and its creditors agreed upon a plan of reorganization in February 2016 and Relativity emerged from bankruptcy on April 14, 2016. Upon emergence Relativity re-issued a $60 million secured promissory note to Critical Content.
The approved reorganization plan restructures Relativity’s debt and lays out a path forward for the studio, which hopes to release as many as six films this year.
Milbank’s team on behalf of the Secured Lenders was led by partner Mark Shinderman (Financial Restructuring), along with partners Al Pisa (Alternative Investments), Scott Golenbock (Corporate), and Neil Wertlieb (Corporate), of counsel Dennis O’Donnell (Financial Restructuring), and associate Kelsey Baumberger (Alternative Investments).
