Weinstein Company Purchase Scuttled

Weinstein Company Purchase Scuttled

374 0


LOS ANGELES (CelebrityAccess) The sale of the Weinstein Company has collapsed yet again after a group of investors called of the purchase after receiving “disappointing information.”

The deal for buying the near-bankrupt company had been reached, according to an announcement by the investor group, led by former Obama administration appointee Maria Contreras-Sweet but once the group looked deeper into Weinstein Company’s books, it found more debt than anticipated, according to sources who spoke on condition of anonymity to the New York Times.

The deal reportedly was expected to pay off the company’s debt, which the group believed to be around $225 million and, in return, it would receive the studio’s assets including its library of 277 films.

Weinstein Company said in a statement it was disappointed by the decision.

“The investors’ excuse that they learned new information about the company’s financial condition is just that – an excuse,” the board said to the Times. “The company has been transparent about its dire financial condition.”

Contreras-Sweet, whose investment group included billionaire Ron Burkle, declined to comment but did release a statement:

“I believe that our vision to create a women-led film studio is still the correct course of action,” she said. “To that end, we will consider acquiring assets that may become available in the event of bankruptcy proceedings, as well as other opportunities that may become available in the entertainment industry.”

The sale, spurred by the exit of chairman Harvey Weinstein after sexual misconduct allegations, was originally shaken by a lawsuit filed Feb. 11 by New York Attorney General Eric Schneiderman, who alleged the company violated state and city laws barring gender discrimination, sexual harassment and coercion.

The original agreement was to purchase the company for $500 million, according to the Mercury News.

Related Post