The Weinstein Co. filed for bankruptcy this week and released any Harvey Weinstein accusers from their nondisclosure agreements, The Washington Post reports. The company announced the filing Monday night.
“This comes months after a series of investigative articles revealed dozens of sexual harassment and assault accusations by women against Weinstein, ranging from unwanted advances to rape (Weinstein denies nonconsensual sexual contact),” The Post reports. “The accusations sparked a seismic shift in the entertainment industry that rippled through media, politics and beyond.”
The company filed for Chapter 11 bankruptcy, which enables it to propose a reorganization plan and to pay creditors through a sale of the company.
“It listed $500 million to $1 billion in debts and the same range for assets,” The Post report notes. “The U.S. Bankruptcy Court in Delaware has to approve the final sale in a bankruptcy auction.”
“Weinstein Co. reached a ‘stalking horse’ agreement with Lantern Capital, meaning Lantern set the floor with its offer, but it may compete with other potential bidders during a court-supervised auction,” The Post reports. “The Lantern bid of $424.5 million includes assuming $114.5 million in liabilities, Variety reported, adding equity holders (like Bob and Harvey Weinstein) ‘are expected to be wiped out,’ Variety reported.”