Another domino has fallen in the downfall of former Hollywood executive, Harvey Weinstein. On Sunday, The Weinstein Company announced that it would declare bankruptcy after a $500 million to deal to sell the company fell through. Things appeared to ultimately go south when a group led by Maria Contreras-Sweet that was interested in buying Weinstein’s Company refused to supply the cash necessary to keep the company afloat for the time being.
While the company itself is worth a whopping $275, The Weinstein Company asked that the Contreras-Sweet led group cover the $225 million debt the company currently has. When Contreras-Sweet and her associates declined to do so, the Weinstein Company was left with no other option, but to file for bankruptcy.
In a letter sent from The Weinstein Company to the interested group, the company characterized Contreras-Sweet group’s attempts to buy the company “illusory”. Furthermore, in the letter The Weinstein company made the following statements toward Contreras-Sweet and company:
“[W]e must conclude that your plan to buy this company was illusory and would only leave this Company hobbling toward its demise to the detriment of all constituents.”
“Despite your previous statements, it is simply impossible to avoid the conclusion that you have no intention to sign an agreement — much less to close one — and no desire to save valuable assets and jobs.”
The company’s file for bankruptcy comes amidst a bevy of highly publicized sexual assault allegations against the company and more specifically, it’s namesake, Harvey Weinstein. As far back as four months ago, The New Yorker released a chilling, in-depth report about the alleged rampant sexual misconduct in The Weinstein Company workplace. As a recently as two weeks ago, New York State Attorney General, Eric Schneiderman, filed a civil lawsuit against The Weinstein Company for failing to protect its employees from sexual misconduct.
Please stay tuned for more updates from Def Pen about this developing story.
