By Ryan Faughnder
Los Angeles Times
WWR Article Summary (tl;dr) Promising a new era for Weinstein Co., Maria Contreras-Sweet’s plan would rename the company and install a new board of directors, the majority of which would be composed of women.
Los Angeles Times
The saga over the future of Harvey Weinstein’s once-influential studio took a new and surprising turn Thursday when an investor group said it had reached an agreement to buy the struggling company’s assets, nearly five months after sexual abuse allegations against Weinstein sent the company into a death spiral.
An investor group led by former U.S. Small Business Administration head Maria Contreras-Sweet and billionaire Ron Burkle has reached an agreement in principle to purchase assets of Weinstein Co., the onetime Obama administration official said Thursday.
The deal is subject to a 40-day closing period, one person familiar with the matter said.
“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.
Promising a new era for Weinstein Co., Contreras-Sweet’s plan would rename the company and install a new board of directors, the majority of which would be composed of women.
Contreras-Sweet did not disclose financial details of the agreement. People familiar with the talks previously said the bid was worth $500 million, including $225 million in assumption of debt.
Representatives for Weinstein Co. and the New York attorney general’s office did not immediately respond to requests for comment.
The announcement marked a stunning reversal from just a few days earlier when it appeared that the New York studio was headed to U.S. Bankruptcy Court after the company’s board said the deal was off the table. The directors said Sunday that the company would prepare to file for bankruptcy in the “coming days.”