Billionaire hedgie Paul Singer asked a judge to block about $28 million in payments to some of Hollywood’s biggest stars.
Singer’s Manchester Securities, a unit of Elliot Management, is a major creditor of the now bankrupt Relativity media, reports the New York Post. Manchester says that Relativity hasn’t proved that the “payments are truly necessary,” and asked a Manhattan court to cap residual and and profit-participation payments if payments are allowed as they would be to unsecured creditors. Paying out the actors and unions would “frustrate the goals of reorganization” Singer argues in court documents.
Relativity filed for bankruptcy at the end of July, saying its $1.2 billion in liabilities has far surpassed its $560 million in assets. As one of the biggest creditors, Manchester is owed $131 million.
It’s not clear what talent is going unpaid by Relativity, but the studio has collaborations with Bradley Cooper, Tom Hanks, Angelina Jolie, and Will Smith.
Photo:Michelle Wright