Ryan Kavanaugh’s debt ridden entertainment company Relativity Media is expected to soon declare bankruptcy. This after the movie making firm was forced to lay off 75 workers yesterday.
Kavanaugh comes from a Jewish family which had changed its name from Konitz.
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The layoffs came after Relativity failed to meet recent payments on its $320 million of debt. Also, previous reports of a white knight investor coming along with an infusion of new capital to “save” the company proved to be false.
Add to that the fact that Kavanaugh himself is being sued for $90 million by RKA Film Financing over Relativity’s failing to make a debt payment deadline. He is being held personally liable for the money and other damages because RKA claims that Kavanaugh violated the terms of the loan by using money for projects other than those which were agreed on.
Relativity, meanwhile, is attempting to maintain a positive attitude in the wake of the layoffs saying that the cuts will help the company with its financial troubles. A spokesman said, “As Relativity continues to move forward with steps to strengthen its balance sheet and reduce costs, we’ve made the difficult decision to eliminate 75 full-time positions across several divisions.”
As a result of these problems, other studios are either pushing back or drop out altogether from planned projects such as the movies “The Bronze” and “Jane Got a Gun.”
Ryan Kavanaugh
Relativity’s Ryan Kavanaugh, having blasted the lawsuit against him
last night, is now lashing out again in a statement just released by him today.
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RKA Film Financing is suing Relativity Media’s Ryan Kavanaugh over
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On Thursday, four days after Ryan Kavanaugh’s cash-strapped Relativity
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The head of Relativity Media, Ryan Kavanaugh, told his staff that he is
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Arrowsmith lead singer Steve Tyler will serenade movie producer Ryan Kavanaugh
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Ryan Kavanaugh film producer and CEO of Relativity has been an exception
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