NEW YORK – The Weinstein Co., a film production company co-founded by disgraced producer Harvey Weinstein, has reached a sale agreement with a group of investors led by Maria Contreras-Sweet, saving it from bankruptcy.
The deal was announced on Thursday shortly after a meeting held in New York.
“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,” Contreras-Sweet said in a statement.
New York’s Attorney General Eric Schneiderman, who filed a civil lawsuit on Feb. 1 against the company and its co-founders, Harvey and Robert Weinstein, also participated in the negotiations.
The sale agreement, reportedly worth $500 million, was also endorsed by billionaire Ronald Burkle and Dallas-based private equity firm Lantern Asset Management.
On Feb. 26, Weinstein Co. announced its plan to file for bankruptcy following its unsuccessful attempt to sell its assets to the investment bloc led by Contreras-Sweet due to the lawsuit filed by New York’s prosecutors.
The suit included new allegations against Harvey Weinstein regarding his “vicious and exploitative mistreatment” of employees, and his victims’ testimonies on sexual harassment, intimidation and other conducts.
New York’s prosecution sat down Thursday with the investors as part of a new attempt to stop Weinstein Co. falling into bankruptcy as well as protect its employees and the alleged victims.
Among the proposals made by the prosecution to finalize the deal was the establishment of a $90-million fund in compensation for victims of Weinstein’s alleged sexual misconduct.