Kristen Wiig-Zach Galifianakis Comedy ‘Masterminds’ Put on Indefinite Hold After Studio’s Bankruptcy
By James Rainey
Relativity Media has attempted to maintain an appearance of normalcy following its bankruptcy, claiming that it would stick with an early October release date for heist comedy Masterminds. But reassurances from Ryan Kavanaugh’s company that the film is coming out as planned have been scratched, with the Kristen Wiig-Zach Galifianakis comedy now postponed indefinitely.
Variety learned about the postponement from international distributors, who complained that they were unable to release the film until it comes out in the U.S. and they now have no idea when, or if, that will happen.
Distributors learned of the delay Friday from Relativity international president Camela Galano. The company did not acknowledge the move until confronted with an email. “Relativity Studios has moved Masterminds from its scheduled October 9th release date,” the company then confirmed in a statement, “and we expect to announce a new 2015 release date shortly.”
See More: Relativity Bankruptcy Auction: Speed Is an Issue (EXCLUSIVE)
The delay is creating big headaches for the film’s more than two dozen foreign distributors who will be out the film’s box office and any marketing bucks they have spent on the film. Redoubling their worries, the foreign companies are being pressed by one of Relativity’s many creditors — OneWest Bank — to cough up distribution fees for the unreleased film, according to a letter obtained by Variety.
The dispute over Masterminds is just one example of the collateral damage that has followed Relativity’s July 30 Chapter 11 filing and of Kavanaugh’s inability, despite his reassurances, to control the outcomes at the company he founded 11 years ago. While the CEO’s reps have suggested there will be an orderly process with Kavanaugh firmly in control, it is actually senior lenders, through a chief restructuring officer, who are pushing for a quick auction of the company, or its pieces.
The bankruptcy court is scheduled to hold a hearing Friday to discuss the request by the lenders — which include Anchorage Capital Group, Luxor Capital Group and Colbeck Capital — to hold an October auction for Relativity. Dozens of unsecured creditors, with a total of $89.9 million in claims, are expected to object and to try to delay the sale until they get some return on their unpaid bills.
The demand, in turn, has prompted a letter from a Relativity Media lawyer telling OneWest Bank to back off. Such collection efforts must be put off during a bankruptcy proceeding, according to the lawyer, Andrew K. Glenn. If the bank (which is owed $27.8 million by Relativity) persists in efforts to collect from distributors, it could face sanctions, according to the letter from Glenn of the firm of Kasowitz, Benson, Torres & Friedman.
OneWest has already been repaid much of the money it loaned the mini-studio, but was still owed $27.8 million at the time of the bankruptcy filing. That is money that Relativity used to pay operating expenses.
Watch the trailer for ‘Masterminds’:
