Relativity’s lenders, including Colbeck Capital, have reached out to prospective investors about the possibility of taking over the company if Kavanaugh is removed as chief executive. Kavanaugh has feuded with Colbeck Capital, accusing partners Jason Colodne and Jason Beckman of leaking damaging information about the company to the press, and successfully pushed for their ouster from the board.
TPG and Colbeck declined to comment.
In a statement to Variety, Relativity spokesman David Shane said: “As we’ve said before, the company and its lenders entered into a formal agreement that allows Relativity additional time to close its previously agreed upon financing transaction. This agreement ensures Relativity additional liquidity as discussions continue. Ryan Kavanaugh, CEO, and Relativity are deeply appreciative of its lenders’ ongoing support, and the company looks forward to continuing to work with its lenders to position us for long-term success.”
Relativity is currenlty operating under strict conditions from lenders because of the debts that came due at the end of May. The company has retained FTI Consulting at the behest of lenders to monitor operations until the debt situation is sorted out.
Relativity’s lenders are said to have reached out to TPG and other potential investors in an effort to allow them to recoup some or all of their outstanding loans. The status of existing Relativity investors, including Steve Mnuchin and Ron Burkle, in a buyout scenario is unclear.