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Investors “at the last minute” bought out the bankrupt company Weinsteins

A group of investors said that in the “last minute” signed an agreement on the acquisition of assets of the company Weinstein Company, founded by the brothers Harvey and Bob Weinstein, writes The Wall Street Journal. Earlier the company declared itself bankrupt.

The group of investors who bought the company was led by Maria Contreras-Sweet, former head of the small business administration department of the US President’s Administration, and billionaire Ron Berkle.

Harvey and Bob Weinstein. Photo by Al Ceiba, Los Angeles Times
Harvey and Bob Weinstein. Photo by Al Ceiba, Los Angeles Times

According to a source familiar with the situation, investors pledged to repay the company’s debt of $ 225 million, and invest another $ 275 million in the company.

Our team is pleased to announce that we have taken an important step and reached an agreement to buy Weinstein Co. assets to create a new company with a new leadership and a new concept embodying the principles that we have been following since the beginning of this process last fall.

Maria Contreras-Sweet
former head of the department of small business administration of the US president

The representative of the company Weinstein.Co informed the publication that the transaction will provide compensation for Harvey Weinstein’s harassment victims and will save the workplaces of the company’s employees.

On February 26, Harvey Weinstein’s studio reported bankruptcy after a failed deal with investors. Buy Weinstein Company was a group of investors led by Maria Contreras-Sweet, but then the deal broke down because of the intervention of the authorities of New York: on February 12 they filed a lawsuit against Weinstein Company, which was accused of insufficient protection of its subordinates from violence by Harvey Weinstein . After that, investors stopped negotiations and refused to issue a deal.

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