Weinstein to file for bankruptcy

los angeles — The Weinstein Co is set to turn to bankruptcy to try and save its entertainment assets from the financial problems that erupted as dozens of actresses came forward to accuse co-founder Harvey Weinstein of decades of misconduct, sparking a global #MeToo movement among women to reveal about past sexual abuses by men.

we will now pursue the Board’s only viable option to maximise the Company’s remaining value: an orderly bankruptcy process

Weinstein Co

The board failed to sell the film studio to investors led by Maria Contreras-Sweet, who ran the Small Business Administration from 2014 to 2017, according to a copy of a letter provided by Weinstein Co on Sunday. The company blamed the investor group for the collapse of the $500 million bid backed by billionaire Ron Burkle.

“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 maximise the Company’s remaining value: an orderly bankruptcy process,” Weinstein Co said in the e-mailed letter addressed to ContrerasSweet and Burkle.

According to the letter, negotiations had continued after the New York Attorney General Eric Schneiderman earlier this month said the offer to buy the studio was unacceptable. The deal lacked “adequate redress, including a lack of a sufficient victims’ compensation fund.” — Bloomberg