A company that loaned Relativity funds for distribution says the mogul owes $7.5 million.
In the middle of his efforts to rescue his studio from financial problems, Relativity CEO Ryan Kavanaugh is now under fire in a new lawsuit from a financing company claiming he hasn’t paid it on time.
In the complaint filed Wednesday in New York Supreme Court, RKA Film Financing says it loaned millions of dollars to Relativity for the distribution of several specific films. Court documents filed with the complaint indicate the films RKA supported include Masterminds, Before I Wake and Solace.
The company claims Relativity “fail[ed] to abide by the contractual terms relevant to the specified use of the loans (i.e. Spending the loans only on the P&A of specific films),” leading the parties to strike a new agreement for Relativity to pay the company $7.5 million.
