Due to the actions of disgraced film producer Harvey Weinstein and the ensuing movement sparked by the allegations against him, The Weinstein Company has found itself unable to survive. The company on Monday announced it has declared bankruptcy, and a bid from Dallas-based investment firm Lantern Capital has been reached, sparking a bankruptcy auction platform in the process.
Employees will be freed from non-disclosure agreements as part of the negotiation terms from New York Attorney General Eric Schneiderman. Lantern’s bid offers $310 million USD in cash, plus an additional $114.5 million USD for liabilities associated with particular TV and film projects, for a sum of $424.5 million USD. The bankruptcy filing also states that the Weinstein Co. has less than $500,000 USD cash on hand, which raises questions on how the alleged Weinstein victims will be paid, since insurance has room to question their accountability.
Said the company in a statement:
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.