“SAG-AFTRA has been working for several months with outside counsel to protect member interests in residuals payable by the Weinstein Company,” the alert said. “As a bankruptcy filing in the next few weeks appears increasingly likely, we strongly encourage you to immediately cash any checks you may have from work performed on Weinstein titles.”
The union, which represents about 160,000 performers, issued the warning on Thursday afternoon. A short time later, an investor group backed by billionaire Ron Burkle announced that it had reached a deal with the Weinstein Co. that will spare the troubled studio from bankruptcy.
The deal came together in a marathon negotiation on Thursday in the office of New York Attorney General Eric Schneiderman. The Weinstein Co. board, including chairman Bob Weinstein, sat down with Burkle and his partner, former Small Business Administration chief Maria Contreras-Sweet, with Schneiderman helping to seal the deal.
“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, with a new board and a new vision that embodies the principles that we have stood by since we began this process last fall,” Contreras-Sweet said in a statement.