Affiliates of Paul Singer’s Elliott Management are again attempting to thwart the sale of Relativity Media LLC, a Hollywood film and TV studio, at a bankruptcy auction next week, the Wall Street Journal reported today. In preliminary objections filed with the U.S. Bankruptcy Court in Manhattan, the affiliates, Heatherden Securities LLC and Manchester Securities Corp., said the sale process has advanced too quickly and ignores the firms’ rights. Manchester, which is one of Relativity’s biggest lenders and has about $138 million on the line, has also complained that the sale process will likely leave it penniless. Lawyers for Heatherden said in court papers that the firm “continues to believe that [Relativity’s] business has substantially greater value than is likely to be achieved through the proposed sale, and that it is not a foregone conclusion that this value cannot be made available to the estates and their creditors.”
