The Weinstein Co. board is meeting this morning with suitors Ron Burkle and Maria Contreras-Sweet, as the two sides restart negotiations toward a sale.
The meeting is taking place in the office of New York Attorney General Eric Schneiderman, who has taken on the task of trying to broker an agreement. The gathering is said to include chairman Bob Weinstein and board member Lance Maerov, with the third board member, Tarak Ben Ammar, available by phone. The Weinstein Co. was represented by its lawyers at a meeting with the attorney general last week.
The assembly marks an abrupt about-face from Sunday night, when the board voted unanimously to cut off talks with Burkle and Contreras-Sweet, claiming they were not acting in good faith. The negotiations to this point have been fraught with mistrust, and complicated by Schneiderman’s filing of a discrimination lawsuit against the company two weeks ago. Time is also running out, as the Weinstein Co. is expected to file for bankruptcy within two weeks, if a deal cannot be consummated.
Schneiderman has encouraged the two sides to reach an agreement that will include a $90 million fund for victims of Harvey Weinstein’s alleged sexual harassment. The attorney general has also objected to Burkle’s plan to name David Glasser, the COO under Harvey Weinstein, as the company’s new CEO.
If a deal is reached, it would spare the company from mass layoffs that are likely to come with a bankruptcy filing.