×

Weinstein Co. Reaches Deal With Unsecured Creditors

The Weinstein Co. announced Friday that it has reached an agreement with its unsecured creditors, clearing a final obstacle to closing its long-awaited sale to Lantern Capital.

The deal comes as the parties were preparing for a make-or-break hearing next Wednesday in Delaware bankruptcy court. The Weinstein Co. had agreed to reduce the sale price from $310 million to $287 million, drawing strong opposition from the unsecured creditors committee. Under the agreement, the sale price increases to $289 million, and certain professionals have agreed to waive $1 million in fees.

“We are delighted that today’s agreement clears the path for this sale to close,” Robert Del Genio, the company’s chief restructuring officer, said in a statement. “Lantern represents the highest and best value to creditors after the competitive bidding process. We thank Lantern and the UCC for their constructive approach to achieving deal certainty.”

Lantern’s co-founders, Andy Mitchell and Milos Brajovic, issued their own statement: “This collective resolution affirms our commitment to closing the transaction. This significant milestone is a very productive and positive step, and we are grateful to be part of the solution.”

Robert Feinstein, an attorney for the committee, called the initial price cut a “money grab” at a hearing last week, and said the company was “rolling over” for Lantern at the expense of victims of Harvey Weinstein’s sexual misconduct.

The agreement comes as the Weinstein Co. was running out of time to complete the transaction. At a hearing last week, Weinstein Co. attorney Paul Zumbro said the studio would run out of interim financing on July 17, and that Lantern’s commitment from its own lender would expire on July 15.

The Weinstein Co. declared bankruptcy in March. At the time, Lantern put in a stalking horse bid to purchase the company for $310 million and assume $115 million of project-based debt. The deal was initially expected to close in early June, but Lantern reportedly balked. Lantern has since claimed that it was misled by the Weinstein Co., and has refused to pay millions of dollars in profit participations owed by the company to actors and directors.

Zumbro has said the company agreed to the price reduction because it has no backup bid, and does not have the time or money to sue Lantern to force compliance with the sale agreement.

The standoff nearly scuttled the sale two weeks ago, which would have forced the company into liquidation.

Popular on Variety

More Film

  • Film Republic Adds Further Sales for

    Film Republic Inks Further Deals for 'God of the Piano' (EXCLUSIVE)

    Sales agent Film Republic has closed further territory sales on “God of the Piano.” Film Movement previously picked up North American rights to the film, as reported exclusively by Variety. Mont Blanc Cinema has taken the rights for Argentina, Chile, Uruguay and Paraguay. Limelight Distribution is looking after the Australian and New Zealand releases, Hualu [...]

  • ‘Bears Famous Invasion’s Lorenzo Mattotti Brings

    Lorenzo Mattotti on MIA Title ‘Bears Famous Invasion of Sicily’

    Illustrator Lorenzo Mattotti is no stranger to film festivals. The artist – a long-time New Yorker cover artist and onetime Lou Reed and Michelangelo Antonioni collaborator – has designed posters for past editions of Venice and Cannes, and has contributed to films that played in Toronto and Rome. This year, however, he experienced the festival [...]

  • Dreamworks Abominable

    'Abominable' Release in Malaysia Abandoned

    Plans to release the increasingly controversial Chinese-U.S. co-produced animation film “Abominable” in Malaysia have been dropped after the distributor said that it would not be cut to cater to political sensitivities. The film includes a scene which depicts a map showing the South China Sea and the so called “nine-dash line” that China uses to [...]

  • Hui He

    RAI Com Takes World Sales on Italy/China Doc About Star Soprano Hui He (EXCLUSIVE)

    Italy’s RAI Com has taken world sales on high-profile documentary “Hui He, the Soprano From the Silk Road,” which is about the personal and artistic journey of one of the world’s leading sopranos and also marks a milestone Italian-Chinese co-production. Hui He was born and trained as a singer in the Chinese city of Xi’an, [...]

  • Bruce Springsteen arrives for the New

    Bruce Springsteen Returns to NJ Hometown for Surprise 'Western Stars' Introduction

    Bruce Springsteen returned to his hometown of Freehold, New Jersey to offer a surprise introduction to the first public multiplex viewing of his concert/documentary film, “Western Stars.” Dressed simply in a brown jacket, Springsteen took a moment to say a few words at the AMC Freehold 14 movie theater on Saturday night. “We knew we [...]

  • Backstage in Puglia del film SPACCAPIETRE:

    'Gomorrah' Star Salvatore Esposito Set For De Serio Twins' 'The Stonebreaker'

    Salvatore Esposito, the Italian star who plays young mob boss Genny Savastano in Italy’s hit TV series “Gomorrah,” will soon be hitting the big screen toplining upcoming drama “The Stonebreaker” by twin directorial duo Gianluca and Massimiliano De Serio, who are known internationally for “Seven Acts of Mercy.” The De Serio twins are now in post on “Stonebreaker” [...]

  • Angelina Jolie is Maleficent in Disney’s

    Box Office: 'Maleficent: Mistress of Evil' Tops 'Joker,' 'Zombieland'

    “Maleficent: Mistress of Evil” is on track to give Disney another first place finish after scoring $12.5 million in Friday’s domestic ticket sales. If estimates hold, the Angelina Jolie-led film should finish the weekend with about $38 million — well below earlier forecasts but enough to top holdover “Joker” and fellow newcomer “Zombieland: Double Tap.” [...]

More From Our Brands

Access exclusive content