Hollywood mogul Ryan Kavanaugh appears to have solidified his hold on beleaguered entertainment company Relativity Media, thanks to a new deal with a Toronto-based private equity firm.
The development comes amid wide speculation that Kavanaugh would soon lose control of the heavily indebted company, which has struggled to produce hit movies.
According to a person close to the negotiations, Catalyst Capital has agreed to take on all of Relativity's senior secured debt, valued at $150 million. Catalyst agreed to a one-year payment extension on Relativity's debt and is also investing $170 million of equity.
Kavanaugh will remain chief executive and chairman for the Beverly Hills-based company, and Catalyst will take a seat on the board of directors.