Female-led investor group scraps deal for Weinstein assets

Contreras-Sweet, a former Obama administration official, said she still believed inside the vision of a studio led by women as well as will consider buying assets if they become available in bankruptcy court.

More than 70 women accused The Weinstein Company co-founder Harvey Weinstein, who was one of Hollywood’s most influential men, of sexual misconduct, including rape. Weinstein has denied having non-consensual sex with anyone.

The Weinstein Company, which fired Harvey Weinstein in October, had been planning to file for bankruptcy when Contreras-Sweet struck the deal last week.

The investors found in which the company’s debt was $280 million rather than the $225 million previously disclosed, one of the sources told Reuters. A second person said in which there were previously undisclosed obligations for royalties as well as various other outstanding work payments, accounts payable as well as a commercial arbitration award.

“After signing as well as entering into the confirmatory diligence phase, we have received disappointing information about the viability of completing This kind of transaction,” Contreras-Sweet said inside the statement.

“We will consider acquiring assets in which may become available inside the event of bankruptcy proceedings, as well as various other opportunities in which may become available inside the entertainment industry,” she added.

In its statement, The Weinstein Company board said the claim in which investors discovered brand new information was an “excuse,” This kind of believed the buyer had never any intention of following through, as well as said the company had been transparent about its financial condition.

“We will continue to work tirelessly – as we have for months – to determine if there are any viable options outside of bankruptcy,” the board said. “inside the meantime, we continue to pursue an orderly bankruptcy process to maximize the company’s value.”

Lions Gate Entertainment Corp had made an earlier offer for some of the company’s assets, as had Qatar-owned film company Miramax, which was originally founded by Harvey Weinstein as well as his brother Bob Weinstein. Both could be among potential bidders if assets come up for sale in bankruptcy.

Representatives for Harvey Weinstein as well as Lions Gate did not immediately respond to requests for comment. A Miramax spokeswoman had no comment.

Contreras-Sweet, who headed the little Business Administration under former President Barack Obama, last week said her investor group had reached an agreement, with help via the brand new York state attorney general’s office, to buy assets via The Weinstein Company to launch a brand new firm that has a majority-female board.

Launched in October 2005, the studio produced as well as distributed critically acclaimed hits including “The King’s Speech” as well as “Silver Linings Playbook,” as well as TV series such as long-running fashion reality competition “Project Runway.”

brand new York Attorney General Eric Schneiderman said at the time he had received commitments in which a well-funded victims compensation fund might be created, brand new policies might protect employees as well as “bad actors” might not be unjustly rewarded.

“We’ll be disappointed if the parties cannot work out their differences as well as close the deal,” Amy Spitalnick, a spokeswoman for Schneiderman, said on Tuesday.

Schneiderman has filed a lawsuit against the company as well as Bob as well as Harvey Weinstein, alleging in which Harvey Weinstein sexually harassed employees as well as the company failed to respond. Bob Weinstein co-founded the company as well as is actually co-chairman. The lawsuit remains active, Spitalnick said.

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