The Weinstein Co. is trying to secure a financial lifeline that will allow the indie film and television studio to avert bankruptcy. The company still believes that it can find a buyer for its library of award-winning movies and programming without having to file for Chapter 11, but even with a cash infusion, its financial picture is bleak.
A series of sexual harassment and assault allegations involving co-founder Harvey Weinstein have triggered the studio’s current crisis, but knowledgeable insiders say that the company faces staggering debt levels that could complicate a sale. They estimate that the Weinstein Co. has a debt load of roughly $520 million. The breakdown of financial obligations demonstrates that the company is heavily leveraged and has extensively used its film library as collateral to secure loans that have allowed it to operate.
As for Harvey Weinstein, the mogul’s publicist hit back at reports that he will be indicted in New York for allegedly raping actress Paz de la Huerta in 2010, saying such a move is not “imminent.” Weinstein has allegedly assaulted or harassed dozens of women, a group that includes Angelina Jolie, Mira Sorvino, Gwyneth Paltrow, and Rose McGowan. Police in Beverly Hills, Los Angeles, and London have also received reports of assaults.
A spokesman for the Weinstein Co. did not respond to a request for comment.
by Brent Lang for Variety