Thursday, November 23

The Weinstein Company runs into debts; looking out for buyers

Weinsten Company

The Weinstein Company will get into a new round of sale discussions with prospective buyers next week as its most recent three-week window of exclusive negotiations with Colony Capital is due to expire today.

Colony is understood to have passed on making a deal for the label, which means a structured bankruptcy filing looms if banker Moelis & Company cannot find a taker for the company’s film and TV assets.

Viacom, Lionsgate, MGM amongst others are expected to look at some of the company’s assets.

With Harvey Weinstein now facing criminal investigations in New York, Los Angeles, and London, the company’s fortunes have plummeted as the growing scandal has led to an exodus of business partners and creative talent.

Planned film releases have been tabled, TV projects in development have been grounded, and its title card has been yanked off existing shows.

The studio has run into hundreds of millions in debt. This means that some buyers are unlikely to make a play for any assets until it goes into bankruptcy proceedings.

The studio has reportedly hired FTI Consulting, a firm with extensive experience in corporate reorganizations, including Relativity Media when that film and television studio filed for bankruptcy protection not long ago.

Presently The Weinstein Co. is looking to Fortress Investment Group to provide a short-term financial influx to stave off bankruptcy.

The Weinstein Company is a mini-major film studio, founded in New York City by Bob and Harvey Weinstein in 2005. It is one of the largest mini-major film studios in North America. Harvey and Bob Weinstein together own 42% of the company.