The head of Relativity Media, Ryan Kavanaugh, told his staff that he is closing a new equity deal in the company worth $300 million, the Hollywood Reporter has revealed. This will give Relativity the money that it needs to pay off $250 million in debt.
Things were looking bad for Relativity. Kavanaugh was desperately looking for ways to raise the required funds to pay off the debt. He had gotten a number of reprieves, but the highly leveraged company was in danger of collapsing when the clock finally runs out on its debt when $120 million of it must be paid in two weeks.
Chinese and Indian investors as well as major Wall Street funds are said to be included in the group of new investors.
THR cited a source who was at a meeting between Kavanaugh and 50 company staffers as saying that the CEO told them, “The deal is closing, and we should be focused on business as usual and ignore rumors. All contracts are signed, everything is done and we are just finalizing all the paperwork.”