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Relativity Media Accuses Lender of Pre-Bankruptcy Plot for Control

Submitted by jhartgen@abi.org on
U.S. film studio Relativity Media LLC is accusing its senior lender and two former executives of a secret plan to thwart its refinancing efforts, a factor that it said in court documents helped lead to its July bankruptcy filing, Reuters reported on Wednesday. In a revised disclosure statement for its plan to exit bankruptcy, Relativity said lender Colbeck Capital Management recruited then-CFO Andrew Matthews and production head Matthew Alvarez to sabotage the studio's efforts to refinance debt. The document accuses Colbeck and the two executives of conspiracy and breach of fiduciary duties. According to Relativity, Colbeck went behind the company's back to try to implement its own buyout plan for its own benefit.