The last big investor Ryan Kavanaugh seduced into believing troubled Relativity Media could survive has asked a Bankruptcy Court judge to take it off life support.
Chicago investor Joseph Nicholas, who helped convince the same New York judge last year that Kavanaugh’s 12-year-old studio would be able to restructure and thrive, is now insisting it be liquidated.
Relativity owes Nicholas more than $35 million, according to papers filed in court late Wednesday that seek to liquidate what remains of Kavanaugh’s dream.
It was just last March when Nicholas, a hedge-fund investor, told Judge Michael Wiles he’d have no trouble raising $100 million in fresh equity for Relativity.
“The calls are coming in,” Nicholas told Wiles.
When it emerged from Chapter 11 in April 2016, Nicholas was named co-CEO.
Since then, however, Nicholas said he and investment bank Houlihan Lokey have been unable to raise additional equity.
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