The Weinstein CompanyThe first was to come up with a purchase price higher than Lantern (Kagans second bid, tendered two days after the auction deadline, hit that mark but there is no clear backing behind it). The second criteria was to to show financial commitments, including equity funding. Third was to complete due diligence, and those insiders said that Kagan had the same access as everyone else to the books, though not as much time as Lantern. Fourth was to put in place a purchase agreement, and fifth was to provide a refundable 5% deposit, which would have amounted to $15 million in cash. Because none of that was put in place, TWCs board declared Lantern the victor. Despite a bid for TV assets from Sonar, Lanterns was the highest — and only — bid for the overall company received at deadline last week.These insiders suspect that Kagan is being given a free ride by the press in being depicted as a white knight, but it has created uncertainty, and the longer this continues, the larger the possibility that Lantern (which has demonstrated complete proof of funding) could exit. They would be owed a $15 million kill fee, and that there could be major litigation from the secured creditors, the major banks that have collateral in TWC assets.Said an insider: “Is his $30 million pledge to victims basically the insurance policy that is in place to cover a host of costs, which is illegal, or is he actually promising that much money to victims to go along with the insurance policy which is not his to give? None of us know and many of us fear that hes getting his 15 minutes of fame at the expense of a bankrupt company and using the victims groups desire for justice for headlines when he has yet to show anyone proof that hes real.”The issue will be decided by Tuesday, and it certainly seems like it is high time for Kagan to put up or shut up.
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