Weinstein Co. sale plan OKd

A Delaware judge on Wednesday approved a revised plan for the sale of the Weinstein Co., the studio forced into bankruptcy by the sexual misconduct scandal that brought down Hollywood mogul Harvey Weinstein.

The revised plan calls for Dallas private equity firm Lantern Capital to pay $289 million for the Weinstein Co.’s assets, down from an initial sale price of $310 million.

Attorneys negotiated the $21 million price reduction after disputes threatened to torpedo the deal. Among those concerns was who would be responsible for paying potentially tens of millions of dollars owed on certain contracts that may be assigned to Lantern.

As part of the settlement, Lantern agreed to pay at least $8.75 million to satisfy certain contractual claims and pay for the Weinstein Co.’s operating expenses since June 29 in exchange for a lower purchase price.

The sale is expected to close Friday, but claims asserted by several Hollywood stars who say they are owed royalties and profit participation payments from various film and television projects will be resolved later.

The sale agreement allows Lantern up to 120 days after closing to decide whether to assume or reject existing Weinstein Co. contracts. A hearing on that issue is scheduled for next Wednesday.

“There will be a number of hearings over the course of the summer to address those issues,” said Lantern attorney Meredith Lahaie, who noted that Lantern is reviewing about 24,000 contracts.

Weinstein Co. attorneys said an important factor in deciding to amend the sale agreement was the need to ensure closing before the company’s bankruptcy financing and Lantern’s debt financing commitment expired.