A group of investors, led by Maria Contreras-Sweet, has reached a deal to purchase assets of The Weinstein Company.
The studio was headed toward bankruptcy after a previous deal with Contreras-Sweet’s consortium seemed to have fallen through. The deal is back on, though, but instead of buying the entire company, the investor group will pay for the majority of its assets.
“Our team is pleased to announce that we have taken an important step and have reached an agreement to purchase assets from The Weinstein Company in order to launch a new company, with a new board and a new vision that embodies the principles that we have stood by since we began this process last fall,” the group said in a statement. “Those principles have never wavered and have always been to build a movie studio led by a board of directors made up of a majority of independent women, save about 150 jobs, protect the small businesses who are owed money and create a victims’ compensation fund that would supplement existing insurance coverage for those who have been harmed. The cornerstone of our plan has been to launch a new company that represents the best practices in corporate governance and transparency.
“This next step represents the best possible pathway to support victims and protect employees.
“We are grateful to the New York State Attorney General’s office for their efforts in helping us reach an agreement and we are grateful to our investors who have believed in this process and in the compelling value of a female-led company. We also want to thank all the parties who returned to the negotiating table to help us reach this development.”
The group includes Contreras-Sweet, who led the Small Business Administration under U.S. President Barack Obama, and is backed by billionaire Ron Burkle.
The Weinstein Co. also released a statement: “We are pleased to announce that we have entered into an agreement to sell the assets of The Weinstein Company to an investor group led by Maria Contreras-Sweet and Ron Burkle. The deal provides a clear path for compensation for victims and protects the jobs of our employees. We greatly appreciate the efforts of Attorney General Schneiderman and his staff, Maria Contreras-Sweet, Ron Burkle and his team at Yucaipa for bringing about this agreement. We consider this to be a positive outcome under what have been incredibly difficult circumstances.”