Judge approves revised Weinstein Co. bankruptcy sale plan - WLOX.com - The News for South Mississippi

Judge approves revised Weinstein Co. bankruptcy sale plan

(AP Photo/Richard Drew). Harvey Weinstein is escorted in handcuffs to a courtroom in New York, Monday, July 9, 2018. Weinstein, who was previously indicted on charges involving two women, was due in court for arraignment on charges alleging he committe... (AP Photo/Richard Drew). Harvey Weinstein is escorted in handcuffs to a courtroom in New York, Monday, July 9, 2018. Weinstein, who was previously indicted on charges involving two women, was due in court for arraignment on charges alleging he committe...
(AP Photo/Craig Ruttle). Harvey Weinstein, left, with his attorney Benjamin Brafman, right, leaves a Manhattan courthouse, Monday, July 9, 2018, in New York. Weinstein, who was previously indicted on charges involving two women, was released on bail on... (AP Photo/Craig Ruttle). Harvey Weinstein, left, with his attorney Benjamin Brafman, right, leaves a Manhattan courthouse, Monday, July 9, 2018, in New York. Weinstein, who was previously indicted on charges involving two women, was released on bail on...
(Jefferson Siegel/The Daily News via AP, Pool). Harvey Weinstein attends his arraignment in court, in New York, Monday, July 9, 2018. Weinstein, who was previously indicted on charges involving two women, was released on bail on Monday while fighting s... (Jefferson Siegel/The Daily News via AP, Pool). Harvey Weinstein attends his arraignment in court, in New York, Monday, July 9, 2018. Weinstein, who was previously indicted on charges involving two women, was released on bail on Monday while fighting s...

By RANDALL CHASE
AP Business Writer

WILMINGTON, Del. (AP) - 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-based 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 was 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.

The Weinstein Co.'s primary assets include a library of 277 feature films that have generated more than $2 billion in aggregate box office receipts worldwide, a television production business, and an unreleased film portfolio that includes four distribution-ready films and other projects in various stages of development.

"It has been a long and rocky road since we filed these cases. ... This has been a difficult company to sell, but we are confident that we have the best deal in hand," Weinstein Co. attorney Paul Zumbro told Judge Christopher Sontchi.

An attorney for the company's official committee of unsecured creditors, a group that includes women who have accused Harvey Weinstein of sexual abuse and harassment, said the settlement was the result of intense negotiations. Those negotiations included the committee successfully arguing that the sale price should be lowered by $21 million, not the initially agreed-upon $23 million. Certain Weinstein Co. financial advisers also agreed to reduce their fees by $1 million.

"The committee is still not happy but has to be practical," said attorney Robert Feinstein. "The sale has to close."

Judge Sontchi noted that while some people might get caught up in Hollywood star power involved in the Weinstein bankruptcy, the case was a very serious one about "terrible things that were done to people."

"I'm very aware of the importance of that," said Sontchi, who presided over the case of the Catholic Diocese of Wilmington, which sought bankruptcy protection in 2009 after failed settlement negotiations with alleged victims of clergy sexual abuse.

The Weinstein Co. sought bankruptcy protection in March amid a sexual misconduct scandal that brought down co-founder Harvey Weinstein and triggered a nationwide movement to address predatory sexual behavior and harassment in the workplace.

Last month, a Delaware bankruptcy judge ruled that six women who have accused Harvey Weinstein of sexual misconduct can proceed with their class action lawsuit alleging that the Weinstein Co. concealed widespread sexual harassment and assaults.

Harvey Weinstein, who has been indicted on criminal charges involving three women, has denied all allegations of nonconsensual sex.

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • NationalMore>>

  • 'Hotel Transylvania 3' tops charts, 'Skyscraper' stumbles

    'Hotel Transylvania 3' tops charts, 'Skyscraper' stumbles

    Sunday, July 15 2018 11:48 AM EDT2018-07-15 15:48:02 GMT
    Monday, July 16 2018 5:58 PM EDT2018-07-16 21:58:58 GMT
    (Sony Pictures Animation via AP). This image released by Sony Pictures Animation shows a scene from "Hotel Transylvania 3: Summer Vacation."(Sony Pictures Animation via AP). This image released by Sony Pictures Animation shows a scene from "Hotel Transylvania 3: Summer Vacation."
    "Hotel Transylvania 3: Summer Vacation" has checked into the No. 1 spot at the box office in its opening weekend and left the Dwayne Johnson action thriller, "Skyscraper," in the dust.More >>
    "Hotel Transylvania 3: Summer Vacation" has checked into the No. 1 spot at the box office in its opening weekend and left the Dwayne Johnson action thriller, "Skyscraper," in the dust.More >>
  • Amazon's Prime Day runs into early snags

    Amazon's Prime Day runs into early snags

    Monday, July 16 2018 3:25 AM EDT2018-07-16 07:25:22 GMT
    Monday, July 16 2018 5:58 PM EDT2018-07-16 21:58:24 GMT
    (AP Photo/Patrick Semansky, File). FILE- In this Aug. 3, 2017, file photo, Myrtice Harris applies tape to a package before shipment at an Amazon fulfillment center in Baltimore. Amazon's Prime Day starts July 16, 2018, and will be six hours longer than...(AP Photo/Patrick Semansky, File). FILE- In this Aug. 3, 2017, file photo, Myrtice Harris applies tape to a package before shipment at an Amazon fulfillment center in Baltimore. Amazon's Prime Day starts July 16, 2018, and will be six hours longer than...

    This year's sales event, which starts Monday afternoon, will be six hours longer than last year's and will launch new products.

    More >>

    This year's sales event, which starts Monday afternoon, will be six hours longer than last year's and will launch new products.

    More >>
  • AP Exclusive: Survivor says officials responsible for riot

    AP Exclusive: Survivor says officials responsible for riot

    Monday, July 16 2018 5:43 PM EDT2018-07-16 21:43:39 GMT
    Monday, July 16 2018 5:57 PM EDT2018-07-16 21:57:52 GMT
    (Suchat Pederson/The Wilmington News-Journal via AP, File). FILE - In a Wednesday, Feb. 1, 2017 file photo, Vaughn Correctional Center near Smyrna, Del., remains on lockdown following a disturbance. A building at Delaware's maximum-security prison that...(Suchat Pederson/The Wilmington News-Journal via AP, File). FILE - In a Wednesday, Feb. 1, 2017 file photo, Vaughn Correctional Center near Smyrna, Del., remains on lockdown following a disturbance. A building at Delaware's maximum-security prison that...
    A state corrections counselor who was taken hostage during a deadly riot at Delaware's maximum-security prison says prison officials are to blame.More >>
    A state corrections counselor who was taken hostage during a deadly riot at Delaware's maximum-security prison says prison officials are to blame.More >>
Powered by Frankly