As expected, The Weinstein Co. has filed for bankruptcy protection in Delaware – five months after allegations of improper sexual behavior by co-founder and co-chairman Harvey Weinstein derailed the venerable studio/distributor.
TWC reportedly is set to sell its assets to Dallas-based investor group Lantern Capital Partners.
“Under the agreement, Lantern will purchase substantially all of the assets of [TWC], subject to certain conditions, including approval of the bankruptcy court,” TWC said in a statement reported by NPR. “The [TWC board] selected Lantern in part due to Lantern’s commitment to maintain the assets and employees as a going concern.”
Notable to the deal: removal of non-disclosure agreements allegedly used by Harvey Weinstein to silence his female accusers.
“The company expressly releases any confidentiality provision to the extent it has prevented individuals who suffered or witnessed any form of sexual misconduct by Harvey Weinstein from telling their stories,” read the statement.
Earlier this month, an investor group led by former Small Business Administration head (under President Obama) Maria Contreras-Sweet and investor Ron Burkle, had agreed to pay $500 million for the TWC, which included assumption of $225 million in debt.
That deal fell apart reportedly after additional liabilities totaling more than $60 million were discovered.