Weinstein’s company files for bankruptcy protection

The Weinstein Company has filed for bankruptcy protection in a last-ditch attempt to survive the sexual misconduct scandal which brought down its co-founder.

The film and television studio has been searching for a buyer for months, and has finally reached an agreement with a Dallas-based private equity firm to buy its assets.

The agreement, though, implies The Weinstein Company (TWC) has to file for bankruptcy protection, outlining a potential $2bn (£1.4bn) in liabilities and assets.

Bankruptcy protection is the status given to an individual or business that is unable to pay back debts in full, but the procedure can take on different forms.

Under Chapter 11, the one chosen by TWC, the company is allowed to continue running as they reorganise financially.

Lantern Capital Partners, the private equity which has agreed to buy TWC, will still have to seek approval by the US Bankruptcy Court.

During that process, TWC will continue, as per law, to consider offers from other potential buyers.

Free of liabilities, the company’s assets – which include hundreds of movies from acclaimed directors – could increase in value.

Lantern Capital has said it will “follow through on our promise to reposition the business as a pre-eminent content provider, while cultivating a positive presence in the industry”.

Bob Weinstein, brother to disgraced mogul Harvey Weinstein, said that “while we had hoped to reach a sale out of court, the board is pleased to have a plan for maximising the value of its assets, preserving as many jobs as possible and pursuing justice for any victims”.

The company, which took a hard financial blow following dozens of sexual assault accusations directed at its co-founder, also announced it was lifting all non-disclosure agreements signed by either victims or witnesses to Weinstein’s alleged abuse.

“Since October, it has been reported that Harvey Weinstein used non-disclosure agreements as a secret weapon to silence his accusers. Effective immediately, those ‘agreements’ end,” the company said in a statement.

“No one should be afraid to speak out or coerced to stay quiet.”

The step was highly praised by New York attorney general Eric Schneiderman, who filed a lawsuit against the company on behalf of its employees.

Schneiderman said the investigation would continue and that he will engage with both TWC and Lantern to ensure “victims are compensated, employees are protected moving forward, and perpetrators and enablers of abuse are not unjustly enriched”.

Harvey Weinstein has denied all allegations of sexual misconduct directed at him.

(c) Sky News 2018: Weinstein’s company files for bankruptcy protection