×
You will be redirected back to your article in seconds

Weinstein Company Renews Sale Effort as Colony Capital Drops Out, Bankruptcy Looms

The embattled Weinstein Company is expected to pursue a new round of sale discussions with prospective buyers next week now that the company’s three-week window of exclusive negotiations with Colony Capital is set to expire on Wednesday.

Colony is understood to have passed on making a deal for all or part of the Weinstein Co. A structured bankruptcy filing looms if banker Moelis & Company cannot find a taker for the company’s film and TV assets.

Viacom, Lionsgate, MGM, and the parent company of veteran indie player Killer Films are among those expected to look at some of the distressed company’s assets. The intensity of interest among the suitors varies, sources said.

Weinstein Co.’s fortunes have plummeted since early last month, when the New York Times and New Yorker published damning exposes detailed allegations of sexual assault and harassment against former co-chairman Harvey Weinstein dating back decades. Weinstein is now facing criminal investigations in New York, Los Angeles, and London. He is now in a legal battle with Weinstein Co., which fired him shortly after the stories were published.

The growing scandal has led to an exodus of business partners and creative talent from Weinstein Co. The company has had to table planned film releases, delay TV development projects at Apple and Amazon, and yank its title card off of existing shows such as Lifetime’s long-running “Project Runway.”

The indie studio behind such recent Oscar winners as “The Artist” and “The King’s Speech” is also saddled with hundreds of millions in debt. Several prospective buyers have indicated they would not make a play for any assets until it goes into bankruptcy proceedings. A reorganization would allow the company to improve its financial liabilities and it would indemnify a potential owner legal action that might arise in connection with Weinstein’s tenure at the company.

In another sign that a bankruptcy restructuring is in the works, The Wrap reported Tuesday that the studio has hired FTI Consulting, a firm with extensive experience in corporate reorganizations. FTI previously worked with Relativity Media when the film and television studio filed for bankruptcy protection.

Last month, Thomas Barrack’s Colony Capital had come forward with an emergency cash infusion in return for an exclusive window to negotiate an acquisition. At present, sources said Weinstein Co. is looking to Fortress Investment Group to provide a short-term financial influx to stave off bankruptcy.

Weinstein Company leaders were floating valuations in the $300 million range, at various points, but companies that have kicked the tires say those figures are wildly inflated. In addition to “Project Runway,” Weinstein Co. has a film library, although the rights are encumbered for some time, and a host of development projects, as well as a distribution and marketing infrastructure.

Killer Content, the parent of Killer Films, is a new entrant in the mix of prospective Weinstein Co. buyers. The indie film banner has access to capital through its Killer Impact division that has a track record of partnering with socially conscious investors on various initiatives. Notably, the company is also headed by women.

(Pictured: “Project Runway”)

More Film

  • Aquaman 2018

    'Aquaman' Crosses $250 Million at Foreign Box Office

    Things are going swimmingly at the box office for “Aquaman” as the Warner Bros.’ superhero flick hits another major milestone overseas. James Wan’s take on the ruler of the seven seas just passed $250 million internationally, and a weekend haul of $126.4 million from 43 territories brings its foreign tally to $261.3 million. “Aquaman” — [...]

  • Mortal Engines

    'Mortal Engines' to Lose More Than $100 Million at Box Office

    “Mortal Engines,” a steampunk fantasy adventure, is also an epic flop. With a budget of just over $100 million and tens of millions in global marketing costs, executives at rival studios estimate that the movie will lose upwards of $100 million. Some even project that number could float to more than $125 million. “Mortal Engines” [...]

  • Thierry Frémaux, José Luis Rebordinos Honored

    Thierry Frémaux, José Luis Rebordinos Named Honorary Argentine Academy Members

    BUENOS AIRES — In a ceremony just before Friday’s prize announcements at Ventana Sur, Cannes chief Thierry Frémaux and José Luis Rebordinos, director of the San Sebastian Festival, were named honorary members of Argentina’s Academy of Motion Picture Arts and Sciences, in a new move for the Academy, out through by its new president, Bernardo [...]

  • Nona

    Film Review: 'Nona'

    Twenty years and 12 features down the line, it’s still hard to peg the directorial sensibility of Michael Polish, with or without the presence of brother Mark as frequent co-writer and actor. His output has been all over the place, from early Lynchian quirkfests to the very middle-of-the-road inspirational dramedy “The Astronaut Farmer,” not to [...]

  • Pawel Pawlikowski "Cold War"

    Pawel Pawlikowski's 'Cold War' Wins for Best Film, Director at European Film Awards

    “Cold War,” Pawel Pawlikowski’s black-and-white romance set in the 1950s, scooped the prizes for best film, director and screenplay at the 31st edition of the European Film Awards on Saturday. “Cold War” star Joanna Kulig also won the award for best actress. Marcello Fonte, the star of Matteo Garrone’s “Dogman,” won for best actor. Armando Iannucci’s [...]

  • The Favourite Bohemian Rapsody Star is

    The Best Movie Scenes of 2018

    When we think back on a movie that transported us, we often focus on a great scene — or maybe the greatest scene — in it. It’s natural. Those scenes are more than just defining. They can be the moment that lifts a movie into the stratosphere, that takes it to the higher reaches of [...]

More From Our Brands

Access exclusive content