Relativity Media is "racing to raise" $200M to "pay off debt coming due May 31," according to sources cited by Atkinson, Kosman & Morgan of the N.Y. POST. Relativity bankers have been "holding a slew of meetings with a host of potential lenders -- including private-equity firms and China-based investors." Relativity Media CEO & Founder Ryan Kavanaugh "denies there is a debt deadline and said that some interests close to the studio are spreading rumors to gain control of the company." Atkinson, Kosman & Morgan cite a source as saying that Relativity is talking with debt holders Colbeck Capital and Anchorage Capital, which are "believed to be at odds with Relativity over how to recapitalize the ailing studio." Penguins co-Owner Ron Burkle "owns some Relativity debt," and some believe he has the "power to pull the rug out from under the studio and take control." However, sources said that Burkle "won't foreclose." Atkinson, Kosman & Morgan note owning a Hollywood studio "with its hands in the sports, fashion and music worlds would have an allure for any investor" (N.Y. POST, 5/22). Relativity Sports, which is a division of Relativity Media, represents athletes across the sports spectrum, including MLB Giants P Madison Bumgarner, Rockets C Dwight Howard, Cardinals WR Larry Fitzgerald, Tigers 1B Miguel Cabrera and Wizards G John Wall (THE DAILY).
