BUYER WALKS AWAY
Weinstein bid gone
Maria Contreras-Sweet, who was expected to sign a deal to take over the troubled Weinstein Co. as soon as Monday, is instead pulling her nearly $500 million offer, The Post has learned.
Contreras-Sweet, the head of the Small Business Administration under President Obama, is backing away from the deal after growing infuriated that New York Attorney General Eric Schneiderman was insisting on inserting a monitor on the board of the new company, sources said.
The businesswoman was unhappy with the AG’s move because she had promised — if her offer for the embattled Hollywood studio was accepted — to appoint a majority female board of directors, sources said.
Plus, Contreras-Sweet was kept out of the negotiations with the AG that resulted in an agreement to put a monitor in place, sources said.
On Sunday, Schneiderman filed a 38-page lawsuit against the company and Harvey and Bob Weinstein related to Harvey’s alleged sexual harassment of women. (See story, Page 8).
Outside the suit, Schneiderman is seeking a monitor because David Glasser, the chief operating officer when Harvey Weinstein led the studio, is expected to be named chief executive under a Contreras-Sweet-led company, sources said. Schneiderman feels Glasser did not do enough to protect employees, sources said.
Contreras-Sweet, who decided to pull her offer before the AG’s lawsuit, has been in exclusive talks to buy the Weinstein Co. for weeks and had worked out a deal to compensate victims of alleged abuse by Harvey Weinstein, sources said. The exclusive period expired on Feb. 11.
Working with Ron Burkle’s Yucaipa Cos. and Lantern Asset Management, which were to provide financing, the 62year-old Californian, in addition to providing the normal indemnifications from the Weinstein Cos.’ existing insurance carries, had pledged the profits from five future movies to victims.
In addition, the ContrerasSweet group was ready to set up a contingency fund of $10 million, according to a source familiar with the negotiations.
Gloria Allred, the lawyer who was representing a number of the victims, had given her blessing to the ContrerasSweet deal, sources said.
The deal would have paid nothing to either Weinstein. Harvey’s alleged decades-long sexual abuse of numerous women forced him from his company shortly after the scandal erupted in October.
Colony Capital, an investor known for investing in distressed Hollywood assets, had emerged as a potential bidder but dropped out in November.
The Weinstein Co. has been able to keep the lights on thanks to the success of “Paddington 2,” sources said. The film has brought in $205 million worldwide, according to Box Office Mojo.
Neither Contreras-Sweet nor Burkle could be reached for comment. The AG’s office did not immediately return calls.