There were several claims made by different woman against Harvey Weinstein for sexual misconduct. The Weinstein studio resisted chapter 11 filing. There are other alternatives being looked at from TWC to seeking loans from private firms and selling the company along with its 300-film library which is massively overloaded. A deal was close to being sealed which was to sell TWC. Eric then filed for a Sunday lawsuit feeling the closeness on his back.
Schneiderman loves power and plays along with it with his firm and put forward that David Glasser a TWC executive would not profit anything from the sale of TWC.
Schneiderman wants reimbursement for the Weinstein victims and penalties to go against the corporation for allow his behavior.During a press conference Schneiderman said that the only way to prove the buyers are serious about doing right by the victims is by fixing the problems. They can fix these problems so let’s see it. A group of investors along with Contreras are together uninterested in what Schneiderman is putting forward.A source has said it’s all very unlikely to be fixed and apologized for.
There was an amount of $500 million put in which from the underground has been said is $175 million above the next highest bidder in line. This seems to be the only one that would take place in the chapter 11 scenario. It seems Contreras and Burkle may not come forward as a stalking bidder in the bankruptcy. Bidders agree it would be a wise step, but it seems they are not interested. TWC are looking like fighting the law suit to save what they can of the deal. Schneiderman has had previous cases of fraud from the Trump University to misrepresentations by the Exxon on the climate change subject. There may be an ability to challenge TWC has pressing financial needs and there won’t be the time available that is needed to pursue the legal side of things.
Schneiderman had a demand that TWC needs to have ongoing supervision in place to avoid any more sex misconducts and any TWC buyer looking to grab at the pre-liquidation which may get deterred from a transaction of outside interference. With five finished films there is a chance they could stall and sell off one of these. Paddington 2 was unloaded to warner bros for around the $20 million mark, yet the other films are seen as having only a minimal value. We are looking at this as a privilege of writing out that check just to lose money this came from one film financier.
It is looking like liquidation is the likely outcome. AG’s lawsuit looks like a probe is going to happen anyway. Looking at it from a transactional point of view the selling of the company through ainsolvency process offers assets can be sold free and without claims and interest. This is a better outcome for Weinstein and Glasser than giving in to Schneiderman’s demands. The high profile and the publicity brought with this will garnish thebankruptcycourt and becomes a great tool to uncover the financial affairs from the Weinstein Co.