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TWC(NEW YORK) — The Weinstein Company has announced its intention to file for bankruptcy after talks with an investor group apparently collapsed.
The talks broke down after New York Attorney General Eric Schneiderman filed a lawsuit on February 21 as the deal was about to close, out of fear alleged victims of Harvey Weinstein’s sexual misconduct wouldn’t be properly compensated if the sale went through, a source told ABC News. The proposed sale itself is a result of Weinstein’s alleged behavior, in part because it indefinitely delayed many of the company’s planned releases.
The investor group had offered to put aside $50 million for victim compensation and re-imagined the company as female-led. Schneiderman disputed that those terms had been assured.
In a statement obtained by Deadline&on Sunday, the Weinstein Company’s board of directors write that the investor group, “asked The Weinstein Company to work with you as ‘partners’ toward the common goal of saving the Company, preserving jobs and establishing a victims’ fund. Given the Company’s financial condition, you urged that ‘time is of the essence’ and represented that you were prepared to enter an agreement promptly.”
The board claims it had hoped to save people’s jobs through a sale, but as of Sunday, talks had concluded without a signed agreement. But in the end, the letter concludes, the company, “will now pursue the Board’s only viable option to maximize the Company’s remaining value: an orderly bankruptcy process.”
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