The Weinstein Company files for bankruptcy and ends prohibitive NDAs

[NCTraveler]

The Weinstein Company has filed for bankruptcy and ended all of its nondisclosure agreements. The company, which produced and distributed Hollywood films like Inglourious Basterds and Silver Linings Playbook, was co-founded by Harvey Weinstein, who has been accused of sexual misconduct dating back decades.

More than 70 women have accused Weinstein of sexual harassment and assault since October, creating a global reckoning and sparking the #MeToo movement, which has continued to shine a light on misconduct in the workplace. Weinstein was fired as the company’s CEO in October over the allegations and the company has since been struggling financially. Weinstein has denied ever having non-consensual sex.

The Weinstein Company had been looking for a buyer or investor for months and made a bankruptcy protection filing in a Delaware court. The company has listed between $500 million to $1 billion in liabilities and the same amount in assets. It is avoiding low bids on its assets by appointing private equity firm Lantern Capital Partners as a “stalking horse bidder.” A stalking horse bid is an initial setting bid, and it’s a way for the company to maximize the value of its assets as part of the court-supervised auction. According to Reuters, Lionsgate and Miramax (which was also founded by Harvey and Bob Weinstein) had both made earlier offers for the company’s assets and could still be bidders.

https://www.theverge.com/2018/3/20/17142570/weinstein-company-bankruptcy-protection-nda