Content adapted from this Zerohedge.com article : Source
The Weinstein Company is declaring bankruptcy today after talks of a bailout failed.
It is 4 months since allegations came out of decades of sexual abuse by Harvey Weinstein involving some of the biggest names in Hollywood. Accoding to information that since came public, Weinstein was aided by a culture that tolerated what he was doing along with the use of NDA (non-disclosure agreement) settlements.
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To wit, TWC's board released a letter Sunday evening to investors Ron Burkle and Maria Contreras-Sweet, the leaders of the bid group, breaking off negotiations. According to the letter, the company is in dire need of operating cash, but the bidders have so far refused to provide interim financing.
"Based on the events of the past week, however, we must conclude that your plan to buy this company was illusory and would only leave this Company hobbling toward its demise to the detriment of all constituents," the letter stated. "Despite your previous statements, it is simply impossible to avoid the conclusion that you have no intention to sign an agreement – much less to close one – and no desire to save valuable assets and jobs."
Any prospects of an agreement were scuttled by the role of David Glasser, who was COO under Weinstein. A deal was close to being in place two weeks ago when the NY Attorney General filed a suit alleging the company enabled Weinstein to commit the acts he did.
However, it appears that the added stress on the transaction exposed conflicts between the two sides. According to the Weinstein Co. letter, the two sides continued to have conflicts over Glasser’s role, a week after the board fired him.
Read the full letter below:
372410882-Twc-Letter by Anonymous JJ6eerL on Scribd
Non-adapted content found at zerohedge.com: Source
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