The Weinstein Company declares bankruptcy

Los Angeles: The Weinstein Co has filed for bankruptcy after dozens of women accused co-founder Harvey Weinstein of sexual misconduct and harassment. The allegations against Harvey, first documented by the New York Times on October 5, tipped the company into a death spiral. He was fired three days later, and subsequently resigned his position on the company board. TV deals were cancelled and the company was forced to take film releases off the calendar. The company, however, may yet be able to re-organise and continue to produce TV shows and films under new ownership. Lantern Capital put in a "stalking horse" bid, which provides a floor for a bankruptcy auction, reported Rolling Stone The Board selected Lantern in part due to Lantern's commitment to maintain the assets and employees as a going concern. The Company hopes that this orderly sale process under the supervision of the Bankruptcy Court will allow it to maximise the value of the Company's assets for the benefit of its creditors and other stakeholders," the company said in a statement. The company also released its employees from their non-disclosure agreements, as part of an ongoing negotiation with New York Attorney General Eric Schneiderman. "No one should be afraid to speak out or coerced to stay quiet. The Company thanks the courageous individuals who have already come forward. Your voices have inspired a movement for change across the country and around the world," the company said. The bankruptcy filing also states that the Weinstein Co has less than USD 500,000 cash on hand. The company has obtained a USD 25 million debtor-in-possession loan from Union Bank, the lead lender on its credit facility. According to the Los Angeles Times, MGM, Killer Content, Lionsgate and beIN Media, the Qatari-owned company that owns the rights to the Weinstein's Miramax library, are among the expected bidders for the Weinstein Company's assets, which includes hundreds of films and television series.