Following an 11th hour effort to save the troubled film production firm from bankruptcy, Weinstein Co. announced that it filed for Chapter 11 protection.
The company filed for bankruptcy in a Delaware court, listing $500 million to $1 billion in assets and the same in liabilities, according to Reuters. According to a report from Variety, The company has obtained a $25 million debtor-in-possession loan from Union Bank, the lead lender on its credit facility.
The filing itemizes $345 million in secured debt, plus an additional $148 million in unsecured obligations. Chairman Bob Weinstein is listed among the unsecured creditors, with a note in the amount of $11.2 million. The production companies belonging to David O. Russell and Bradley Cooper are each owed $941,000. Other unsecured creditors include Wanda Pictures ($14.4 million); Disney ($1.1 million); Sony ($3.7 million); and CAA ($1.5 million); as well as numerous law firms.
According to CNBC, the company has entered into a stalking horse bidding process with Lantern Capital to purchase substantially all of the debtors assets.
The Weinstein Company (TWC), a multimedia production and distribution company launched in October 2005 by Bob and Harvey Weinstein, the brothers who founded Miramax Films in 1979, came under intense media scrutiny last year when Harvey Weinstein was accused of engaging in a pattern of sexually inappropriate behavior with the studios female cast members.
"While we had hoped to reach a sale out of court, the Board is pleased to have a plan for maximizing the value of its assets, preserving as many jobs as possible and pursuing justice for any victims," Bob Weinstein, Harvey Weinstein's brother and chairman of the company, said in a statement provided to CNNMoney.
The company also took the step of eliminating any non-disclosure agreements that kept its employees from discussing the unfolding drama around Harvey Weinstein.
"Effective immediately, those 'agreements' end. The Company expressly releases any confidentiality provision to the extent it has prevented individuals who suffered or witnessed any form of sexual misconduct by Harvey Weinstein from telling their stories. No one should be afraid to speak out or coerced to stay quiet," the Weinstein Co. said.