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Weinstein Co sales price increased by US$2m in push to close deal
[UNITED STATES] The Weinstein Co, its buyer and creditors on Friday said they reached a deal to increase the bankrupt film studio's sales price by US$2 million, to US$289 million, to ensure the deal goes through.
Robert Del Genio, a senior managing director of business advisory firm FTI Consulting who is serving as Weinstein Co's chief restructuring officer, said in statement that the agreement "clears the path for this sale to close."
The deal follows a bid last month by the Weinstein Co to cut its sales price to US$287 million to settle disputes that broke out after it announced a plan in May to sell its library, television shows and unreleased movies to Lantern Capital Partners for US$310 million.
Weinstein Co said it needed to cut the sales price to close the transaction because it was nearly out of cash and financing deadlines for the sale were approaching fast.
Weinstein Co had won bankruptcy court approval for the US$310 million sale, but before it could close disputes broke out over so-called cure amounts the studio would have to pay to exit or transfer certain contracts.
Lantern also charged the studio breached representations and warranties in their asset purchase agreement.
Ahead of a June 22 conference on the sale, the two companies reached a deal to cut US$23 million from the sales price to settle all disputes over cure amounts and cease fighting over details of the asset purchase agreement in order to close the sale.
Under the new deal announced on Friday, Lantern Capital agreed to make numerous cure payments for contracts it is assuming in the sale to resolve concerns of unsecured creditors.
A hearing where the Weinstein Co will argue for an order approving its new sales price has been scheduled for July 11 in US Bankruptcy Court in Delaware.
The studio sought Chapter 11 bankruptcy in March after several months of looking for a buyer amid a scandal that rocked the entertainment industry stemming from allegations of sexual misconduct leveled against co-founder Harvey Weinstein.
The one-time Hollywood kingpin has denied having nonconsensual sex with anyone.
The case is The Weinstein Co Holdings LLC, US Bankruptcy Court, District of Delaware, No. 18-10601.