The Weinstein Company, the movie studio co-founded by disgraced Hollywood executive Harvey Weinstein, has filed for bankruptcy.
More specifically, Page Six reports that the studio filed for "bankruptcy protection" as they have a buyout offer on the table from Lantern Capital Partners, pending approval from the U.S. Bankruptcy Court in Delaware.
Additionally, the company is also releasing any witnesses or victims related to the Harvey Weinstein sexual abuse scandal from any NDA they may have signed.
The Weinstein Company says it “expressly releases any confidentiality provision” to the degree that it has kept anyone who “suffered or witnessed any form of sexual misconduct by Harvey Weinstein from telling their stories.”
While the bankruptcy reports have now been confirmed, it was rumored for many weeks that the studio was on the brink of collapse.
The board in control of The Weinstein Company released a letter in February that was directed at potential buyers Maria Contreras-Sweet and Ron Burkle, chastising them for allegedly never having any real plans to purchase the company.
"While we deeply regret that your actions have led to this unfortunate outcome for our employees, our creditors and any victims, we will now pursue the Board’s only viable option to maximize the Company’s remaining value: an orderly bankruptcy process," the letter states.
Furthermore, per THR, the board said, "we must conclude that your plan to buy this company was illusory and would only leave this Company hobbling toward its demise to the detriment of all constituents."
Interestingly, New York State Attorney General Eric Schneiderman has been perusing a civil rights lawsuit against The Weinstein Co., as well as its founders Harvey Weinstein and Bob Weinstein, stemming from the numerous allegations of sexual harassment and sexual assault against Harvey.
Eric Soufer, the director of communications and senior counsel for the New York State Attorney General's office, released a statement reagrading the new Weinstein Co. letter, saying, “Over the past two weeks, we had very productive discussions with both parties about accomplishing the Attorney General’s goals of compensating victims, protecting employees, and rooting out those who enabled years of sexual abuse at the Weinstein Company.
“We are disappointed that despite a clear path forward on those issues —including the buyer’s commitment to dedicate up to $90 million to victim compensation and implement gold-plated HR policies — the parties were unable to resolve their financial differences," Soufer continued.
"We will continue to pursue justice for victims in the event of the company’s bankruptcy, and our investigation into the pattern of egregious abuse by Harvey Weinstein and his enablers is ongoing," he added.1comments
Additionally, in their letter, the Weinstein Co. board wrote that since the time of their meeting on Feb. 21, "we and our advisors have worked tirelessly to finalize an agreement to present to the Attorney General for his approval."
"While acceding to virtually every demand you imposed, we made clear that the one thing the Company needed in furtherance of your good faith was interim funding to run our business and maintain our employees — employees who have remained dedicated to the Company even amidst great uncertainty," the board added. "During this time, we waited patiently for you to deliver the terms you represented would save this Company from certain bankruptcy."