Movie production company, The Weinstein Co, managed to reignite sale talks with a group of investors who want to convert the disgraced film studio into a female-led venture.
After an arduous process, businesswoman, Maria Contreras- Sweet, announced on Thursday that a deal has finally been reached for the investor group she and billionaire, Ron Burkle, lead to buy disgraced mogul Harvey Weinstein’s former company. The decision was reached after all sides met with New York State Attorney General, Eric Schneiderman earlier in the day.
The sale saves the Weinstein Co from bankruptcy and is expected to take 40 days to close.
If the film studio would have filed for bankruptcy, all the lawsuits filed by the women who have accused Harvey Weinstein of sexual harassment and assault would have been halted.
The deal would see the investor group establish a compensation fund of approximately $90 million for Weinstein’s accusers.
“The deal provides a clear path for compensation for victims and protects the jobs of our employees,” the Weinstein Co.’s board of directors said in a statement.
According to Contreras-Sweet, the deal would save 160 jobs as well as protect the small ventures that are owed money by the studio.
The Attorney General gave his blessing to the deal mainly because it would create a well-funded victims compensation fund, as well as protect all remaining employees. Schneiderman said that his office will work with the two sides to ensure they honor all aspects of the agreement.
Several people familiar with the matter have said that the film company’s co-founder Bob Weinstein had met with Contreras-Sweet and Burkle at Schneiderman’s office.
The investing group would pay $220 million for the majority of the Weinstein Co. assets and assume nearly $225 million of the company’s debt. In addition, the new company would invest an additional $90 million to compensate Harvey Weinstein’s accusers, including $60 million put up by the buyers and $30 million for insurance proceeds.
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