UPDATED : The deal has gone cold again, according to Bloomberg. Maria Contreras-Sweet said her group is pulling out of its deal to buy the troubled studio after an examination of its finances raised doubts about the company’s viability.The deal fell apart after Contreras-Sweet’s group learned Weinstein’s liabilities were higher than the $225 million previously thought.
The home of the “Hellraiser” movies has been saved.
In a last minute deal, an investor group spearheaded by Ron Burkle has reached a $500 million deal with the Weinstein Co. to save the troubled company from bankruptcy.
According to Variety, the deal came together in a lengthy meet on Thursday where the Weinstein Co.board, including Bob Weinstein, sat down with Burkle and his partner Maria Contreras-Sweet to solidify the deal.
“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.
“We are pleased to announce that we have entered into an agreement to sell the assets of The Weinstein Company to an investor group led by Maria Contreras-Sweet and Ron Burkle,” the board said. “The deal provides a clear path for compensation for victims and protects the jobs of our employees. We greatly appreciate the efforts of Attorney General Schneiderman and his staff, Maria Contreras-Sweet, Ron Burkle and his team at Yucaipa for bringing about this agreement. We consider this to be a positive outcome under what have been incredibly difficult circumstances.”
Contreras-Sweet will keep the current employees of the Weinstein Co as well as expand operations in L.A and London.
Ms. Contreras-Sweet had previously stated that she would put together a board of directors consisting mostly of women.
“Women will be significant investors in the new company and control its voting stock.”
Bob Weinstein will depart the company under the agreement, and take the Dimension brand with him as well as one unreleased film, “Polaroid.” The investor group will take possession of the Weinstein’s Co.’s 277-film library, including the Dimension titles. Another 125 titles were mortgaged to stave off creditors in 2010, and those will remain encumbered after the sale.