The Weinstein Company, whose former chairperson Harvey Weinstein has been accused of sexual harassment and assault by several women, said on Monday that they’ve filed for bankruptcy with an offer from an affiliate of private equity firm Lantern Capital Partners to acquire its assets.
According to a statement released by the company on Monday, the company has filed for bankruptcy in Delaware while entering into a “stalking horse” agreement with the affiliate of Lantern Capital Partners, a Dallas-based private equity company.
According to Deadline, “As a stalking-horse bidder, it (Lantern) was chosen to make a first offer for The Weinstein Co.’s assets, though other potential buyers could also vie for the company’s assets. A stalking horse effectively sets the bar so that other bidders can’t low-ball the asset.”
The studio’s bankruptcy comes after it spent months looking for a buyer or an investor. The company earlier had signed a contract with an investor group headed by former Obama administration official Maria Contreras-Sweet, but the group cancelled its offer earlier this month after seeing that the company had more liabilities than previously disclosed.
“While we had hoped to reach a sell out of court, the board is pleased to have a plan for maximizing the value of its assets, preserving as many jobs as possible and pursuing justice for any victims,” Bob Weinstein, Harvey Weinstein’s brother and chairman of the company, said in a statement provided to CNNMoney.
In a recent tweet, Eric T. Schneiderman, the New York State attorney general, who is investigating the case said: “Mr Weinstein was able to cover up allegations of misconduct for so long in part by relying on the unusually restrictive agreements.”
We are deeply familiar with Harvey Weinstein’s years of egregious sexual abuse, and recently filed a civil rights lawsuit against him alleging severe and persistent abuse of employees at TWC. We are committed to pursuing a full, fair, and independent review of this matter. -ETS https://t.co/Z80VigjSoG
— Eric Schneiderman (@AGSchneiderman) March 20, 2018
More than 70 women accused Harvey Weinstein, who was one of Hollywood’s most influential men, of sexual misconduct, including rape.