The biggest loser in Relativity Media’s Chapter 11 bankruptcy filing on Thursday appears to be Carat USA, the giant advertising agency with the biggest debt to the embattled movie studio: $36.8 million.Carat won’t see the funds anytime soon. And as one of 50 unsecured creditors listed in Relativity’s filing, it could wind up with just pennies on the dollars that it is owed.
Not surprisingly, it is one of the disputing the claim.A bankruptcy judge will oversee any payments, which would come from funds from the sale of Relativity’s film and TV assets, and only after the company’s secured creditors — led by New York-based Anchorage Capital — are made whole.
Source: Relativity’s Million-Dollar Unsecured Creditors Include Carat, Technicolor, Cinedigm and Cinram