A U.S. bankruptcy judge approved on Friday procedures for auctioning the film studio co-founded by Harvey Weinstein, who was fired by the company last year in the wake of allegations of sexual assault, Reuters reported. The Weinstein Co. filed for bankruptcy last month with an initial or so-called stalking horse bid from an affiliate of private equity firm Lantern Capital Partners, estimated to be worth around $310 million. Interested buyers now have until April 30 to submit a higher bid. If multiple bids qualify, an auction will be held at the office of law firm Richards, Layton & Finger in Wilmington, Delaware, on May 4. More than 70 women have accused Harvey Weinstein, who was one of Hollywood’s most influential men, of sexual misconduct, including rape and assault. Weinstein has denied having non-consensual sex with anyone. When the allegations against Harvey Weinstein became public in October, the company’s board fired him, and Hollywood heavyweights distanced themselves from the studio. Bankruptcy will allow Weinstein Co. assets to be sold stripped of liabilities. Movie producer Killer Content Inc. said in January it might make a bid if the company was put into chapter 11 protection. Read more.
In related news, James Stang of Pachulski Stang Ziehl & Jones, who has represented sexual abuse victims in Catholic Church bankruptcies, is now tasked with getting the best deal possible for women who allege Harvey Weinstein’s now-bankrupt studio concealed years of sexual misconduct by its co-founder and former chief executive, the Wall Street Journal reported. The group of creditors he represents includes women whose claims for damages against the studio must now be reconciled in bankruptcy court. Women who have filed lawsuits against Weinstein Co. are now unsecured creditors with claims in the company’s bankruptcy. Any additional women who come forward with misconduct allegations against the company will also have unsecured claims, which like all claims in chapter 11 will be meted out in an eventual debt-repayment plan that is subject to bankruptcy court approval. Read more. (Subscription required.)
Don't miss the "Restructuring a Firm After Discrimination or Sexual Harassment Claims" panel at #ABISpringMeeting! Hon. Judith K. Fitzgerald (ret.) of Tucker Arensberg provides a preview. Click here to register.
