Following the widely publicized sexual misconduct scandal involving Hollywood big wig Harvey Weinstein last year, his production company, The Weinstein Company, has filed bankruptcy.
The company announced Monday (March 19) that it has declared bankruptcy. Furthermore, a bid from Dallas-based investment firm Lantern Capital has been reached, sparking a bankruptcy auction in the process.
In a statement, the company said:
The board selected Lantern in part due to Lantern’s commitment to maintain the assets and employees as a going concern. The Company hopes that this orderly sale process under the supervision of the Bankruptcy Court will allow it to maximize the value of the Company’s assets for the benefit of its creditors and other stakeholders. No one should be afraid to speak out or coerced to stay quiet. The Company thanks the courageous individuals who have already come forward. Your voices have inspired a movement for change across the country and around the world.
As part of the negotiation terms from New York Attorney General Eric Schneiderman, employees will be also freed from non-disclosure agreements.
According to reports, Lantern’s bid offers $310 million in cash, plus an additional $114.5 million for liabilities associated with particular TV and film projects, with the total sum coming in at $424.5 million.
The bankruptcy filing states that the Weinstein Co. has less than $500,000 cash on hand, which raises questions on how the alleged Weinstein victims will be paid.