The Weinstein Company
The Weinstein Co., which tumbled into bankruptcy after failing to close an eleventh-hour sale to rescue the troubled company, is suddenly a hot property on the auction block.
An attorney representing the studio told the U.S. bankruptcy court judge today that some 60 potential buyers have emerged for the Weinstein Co.s film and television assets, 48 of whom already have inspected the companys books in a data room ahead of the courts April 30 auction deadline.
The Weinstein Co. is responding to information requests, the attorney said, even as it works closely with stalking horse bidder, Lantern Capital, to ensure a smooth transition should the Dallas based firm emerge with the studios assets.
Jennifer Hagle, an attorney representing Union Bank, which agreed to provide debtor-in-possession financing to The Weinstein Co., described the once-storied studios current precarious financial situation. The company lacks the resources to fund production costs for television or film projects, she told the court, and “generates no steady revenue.”
The proposed $25 million loan would maintain The Weinstein Co.s operations through July, essential bridge financing, Hagle said, “given the nature of the companys limited operations and the extent they pushed liquidity as far as they could.
Hagle added “its critical” the auction proceeds as scheduled in May 4.
The Weinstein Co. did see a windfall — a $9.5 million payment from Anchor Bay Entertainment — which the company hopes to reserve for the benefit of its unsecured creditors, which would include the women whove accused co-founder Harvey Weinstein of sexual assault and harassment.
Judge Mary F. Walrath approved the debtor-in-possession financing arrangement.
The judge scheduled a hearing for April 27 to hear arguments in a request for an injunction to bar Hotel Mumbais sale as part of the Weinstein Co.s assets.
The films backers say they rescinded their distribution and marketing agreement with The Weinstein Co. in February, following damaging news accounts of co-founder Harvey Weinsteins sexual misconduct and a subsequent lawsuit alleging a corporate cover-up.
Nonetheless, the Weinstein Co. included Hotel Mumbai as a “top unreleased picture” to be sold to the stalking horse bidder, Lantern Capital, in its March bankruptcy filing. The films backers are asking the bankruptcy court judge in Delaware to rule that Hotel Mumbai was erroneously included among the Weinstein Co.s assets — a determination that would free it to get another domestic distributor.
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