The fate of the Weinstein Company appears to be (finally) sealed.
Just days after a deal had nearly fallen through and the company was due to file for bankruptcy, the investor group led by Maria Contreras-Sweet has reached an agreement to buy the company’s assets.
“Our team is pleased to announce that we have taken an important step and have reached an agreement to purchase assets from The Weinstein Company in order to launch a new company,” said Contreras-Sweet in a statement. “This next step represents the best possible pathway to support victims and protect employees.”
Following a lawsuit filed by New York Attorney General Eric Schneiderman in mid-February, Contreras-Sweet agreed, as part of the deal, to increase the settlement funds available for the victims’ compensation fund; $90 million will reportedly be made available, including approximately $30 million in insurance money. Schneiderman’s lawsuit nevertheless remains active.
When Contreras-Sweet first made the offer for the company last year, she outlined intentions to give women a dominant place in the new company. She said that she would serve as chairwoman of a majority female board of directors, and would target female investors, according to The New York Times.
Sources told the Times that the investor group will be responsible for paying off the Weinstein Company’s debt, worth about $225 million, but will in turn receive much of the studio’s assets, which will “be used to start a new entertainment firm.” The deal is reportedly worth a total of $500 million, including the assumption of the company’s debt. The new company also reportedly intends to retain the company’s 150 employees.