Relativity Media said on Tuesday the United States Bankruptcy Court for the Southern District of New York had given the go-ahead to its plan of reorganisation, subject to qualifiers.
The development clears the way for Relativity to emerge from Chapter 11 bankruptcy, although Judge Michael Wiles needs to see that Relativity has closed $80m in additional funding and finalised deals for Kevin Spacey and Dana Brunetti to run the studio.
Qualifiers aside, Judge Wiles found on Tuesday that the plan satisfied the various requirements of the U.S. Bankruptcy Code and said the Court would entertain an order confirming it.
“Today we achieved an important milestone in Relativity’s path to emerging from chapter 11 as a stronger, well-capitalized media company that is well positioned for growth and success,” said chairman and CEO Ryan Kavanaugh.
“We sincerely appreciate the support of our financial partners and creditors, as well as the unrelenting dedication of our employees, which together have allowed us to successfully complete this process. We have a phenomenal management team in place, and we can’t wait to create Relativity’s new future.”