Weinstein Co plans to go bankrupt
THE Weinstein Company says the US film studio, whose exchairman Harvey Weinstein has been accused of sexual harassment and assault, plans to file for bankruptcy in the coming days after the collapse of talks to sell itself.
Filing for bankruptcy protection creates more uncertainty about how women who allege they are victims of Weinstein could be compensated.
The scuppered sale deal had a provision for a victims’ fund, but in bankruptcy the women might be treated as unsecured creditors who could recoup only cents on the dollar for their claims.
The Weinstein Company had been close to inking an agreement this month to be taken over by investors led by former Obama administration official Maria Contreras-Sweet for more than $US500 million ($A700 million), but a lawsuit filed by New York’s Attorney General, Eric Schneiderman, on February 11 complicated the negotiations.
Mr Schneiderman had wanted any deal to provide adequate compensation to women who said they were victims of Weinstein, protect the company’s employees and to not reward executives who allegedly knew of the abuse.
Mr Schneiderman’s office said in a statement on Monday it was disappointed in the collapse of the deal discussions, which included a commitment from the buyers for up to $US90 million in victim compensation, and that it would continue to investigate alleged abuse by Weinstein.
More than 70 women have accused Weinstein, once one of Hollywood’s most influential men, of sexual misconduct, including rape. Weinstein denies having non-consensual sex with anyone.