March 6, 2018
The rollercoaster sale of The Weinstein Co. has apparently gone off the rails again after buyers reportedly discovered undisclosed liabilities totaling more than $60 million.
The setback could see the famed studio/distributor (and home entertainment unit) co-founded by Bob and Harvey Weinstein filing for bankruptcy, putting the jobs of 130 people in doubt, according to The Los Angeles Times.
TWC troubles began last year after Harvey Weinstein was accused of improper sexual behavior, including rape, by dozens of accusers – charges he denies.
The buyers, spearheaded 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.
Contreras-Sweet envisioned running the company with a female-centric board of directors, among other management moves.
“All of us have worked in earnest on the transaction to purchase the assets of the Weinstein Company. However, after signing and entering into the confirmatory diligence phase, we have received disappointing information about the viability of completing this transaction,” Contreras-Sweet said in a statement. “As a result, we have decided to terminate this transaction.”
New fiscal liabilities reportedly included $20 million in accounts payable, $17 million due in an arbitration award, and $27 in residuals, according to The Times.