Weinstein Co. is set to file for bankruptcy after sale talks collapse
Source: L.A. Times
FEB 25, 2018 | 9:45 PM
Weinstein Co., the New York studio co-founded by Harvey Weinstein, will file for bankruptcy protection after last-ditch talks to sell its assets to an investor group collapsed, the company's board of directors said Sunday night.
"While we recognize that this is an extremely unfortunate outcome for our employees, our creditors and any victims, the Board has no choice but to pursue the only viable option to maximize the company's remaining value: an orderly bankruptcy process," the board said in a statement.
The decision came after the board was unable to revive a deal to sell the struggling studio to an investor group led by Maria Contreras-Sweet, who ran the Small Business Administration under President Obama from 2014 to 2017.
The bid, backed by billionaire investor Ronald Burkle and Dallas private equity firm Lantern Asset Management, would have given Contreras-Sweet's consortium control of Weinstein Co.'s assets in a deal worth about $500 million. Their bid promised a new era for the once high-flying studio that has been in a tailspin since allegations against Harvey Weinstein shook the entertainment industry to its core more than four months ago.
Read more: http://www.latimes.com/business/hollywood/la-fi-ct-weinstein-company-bankrtupcy-20180225-story.html
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