The planned sale of The Weinstein Company collapsed yet again on Tuesday, when the investor group that had agreed to purchase the embattled studio said it had called off the deal after receiving “disappointing information.” (NYT)
The move came after its would-be buyer found about $65 million of additional liabilities and pulled out, according to a person familiar with the purchaser. The buyers’ group, organized by investor Ron Burkle and publicly led by businesswoman Maria Contreras-Sweet, said it called off the planned purchase of most of the beleaguered film and television studio’s assets less than one week after saying it would buy them by assuming $225 million of debt. (WSJ)
The failure of the deal likely means The Weinstein Co. will be forced to file for bankruptcy protection in the coming days. The studio has been teetering on the brink of financial ruin after numerous allegations of sexual abuse and harassment against its co-founder Harvey Weinstein were made public in October. (Variety)
Contreras-Sweet’s group was due to make an initial payment of about $1.5 million on Tuesday. Presumably, that didn’t go through. The contract carried no penalty for its dissolution—often called a breakup or termination fee—so there would have been little incentive for Contreras-Sweet and her group to see it through after realizing the numbers were unfavorable. (HuffPost)
Contreras-Sweet and Burkle would still like to pursue the idea of a women-led film studio and held out the possibility that some of the Weinstein Co.’s assets could be acquired once the expected bankruptcy proceedings take place. (THR)