Connect with us

Hi, what are you looking for?

Jewish Business News

Business

Is Relativity Media Finished?

The firm was forced to lay off 75 workers yesterday.


Ryan Kavanaugh

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.

Please help us out :
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at [email protected].
Thank you.

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 Media

 

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

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.

Kavanaugh confirmed yesterday’s Deadline storythat More…

Relativity at 10 party

RKA Film Financing is suing Relativity Media’s Ryan Kavanaugh over

his failure to meet the deadline on a $7.5 million loan payment. The suit was

filed yesterday in a Supreme Court of the state of New More…

Relativity at 10 party

On Thursday, four days after Ryan Kavanaugh’s cash-strapped Relativity

Media reportedly struck a deal with a Canadian company to get a cash infusion

to make a $320 million overdue debt payment, the Hollywood More…

Relativity at 10 party

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 More…

Steve Tyler

Arrowsmith lead singer Steve Tyler will serenade movie producer Ryan Kavanaugh

and his bride, Sports Illustrated Swimsuit model Jessica Roffey at their wedding,

as reported by the New York Post. Kavanaugh and Roffey More…

Relativity at 10 party

Ryan Kavanaugh film producer and CEO of Relativity has been an exception

to the unwritten rule among Hollywood producers, who have been subdued or

silent in their comments about the conflict in Gaza, while actors More…

Newsletter



Advertisement

You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...

Entertainment

The Movie The Professional is what made Natalie Portman a Lolita.

Travel

After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.