Ryan Kavanaugh, who founded the company in 2004, filed for Chapter 11 bankruptcy protection in July last year. He was reportedly unable to make a payment of USD 320 million owed to creditors, making it one of the biggest bankruptcies in Hollywood history.
Kavanaugh is now looking to revamp the studio and he has acquired Spacey's Trigger Street Productions and put the star in charge alongside his producing partner Dana Brunetti, who will be president, said the Hollywood Reporter.
"They thought we were crazy when we chose to do House of Cards with an online streaming service; they thought I was crazy when I went to run The Old Vic Theatre (in London) when no one thought it could be saved, and this move with Relativity will be proof for some that we really are crazy," a statement from Spacey reads.