The Weinstein Co. announced yesterday that it had filed for bankruptcy, finding itself unable to survive after the allegations of sexual abuse leveled against co-founder Harvey Weinstein last year.
The company may be able to re-organise and continue to produce TV shows and films under new ownership.
Lantern Capital put in a “stalking horse” bid, which provides a floor for a bankruptcy auction.
“The Board selected Lantern in part due to Lantern’s commitment to maintain the assets and employees as a going concern,” the company said in a statement.
“The Company hopes that this orderly sale process under the supervision of the Bankruptcy Court will allow it to maximize the value of the Company’s assets for the benefit of its creditors and other stakeholders.”
The bankruptcy filing also states that the Weinstein Co. has less than $500,000 cash on hand.
The Lantern bid leaves open the question of how much money will be left for victims of Weinstein’s alleged harassment. Insurance is expected to provide up to $30 million, though the insurer may yet contest its obligation to pay.
