Hollywood film and TV company Relativity Media filed for Chapter 11 Bankruptcy protection Thursday and it listed its largest unsecured debt as a $36.8 million bill for unpaid advertising.
Carat USA is listed as the unsecured creditor due the money, although Relativity actually owes it to the media companies where the advertising was placed according to the agency. Those individual media companies were not identified in Relativity’s Chapter 11 petition which was filed with the U.S. Bankruptcy Court in New York City.
Palisades Media was second-ranked on Relativity’s unsecured creditors list with a debt of about $5.2 million. Google is owed $648,000 and National Cinemedia, $200,000. Creative Advertising Group is owed $300,000.
Carat won the Relativity media-buying and planning assignment in 2010 and will continue to work with the firm as it winds its way through the Chapter 11 process.
Last year, Relativity tapped one of Carat’s top execs — Angela Courtin — to leave the agency, where she served as U.S. president, Dentsu Aegis Network, to join the film company as CMO. Now Courtin is joining another media company. Today, Fox Broadcasting confirmed that she is joining as EVP and CMO.