The Weinstein Company says it will file for bankruptcy after a deal for the sale of the company fell apart.
The film and television studio had been in talks with a group led by Maria Contreras-Sweet, who was in charge of the Small Business Administration under President Obama, and backed by billionaire Ron Burkle. The deal was said to be worth $500 million — "roughly $275 million for the Weinstein Company, plus the assumption of $225 million in debt," The New York Times reports.
According to a letter from the Weinstein Company to Contreras-Sweet and Burkle, talks broke down in part over the issue of interim funding, which the studio needed to stay operational and paying its employees.
"[W]e 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 company said in a letter. "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."
"While we recognize that this is an extremely unfortunate outcome for our employees, our creditors and any victims, the board has no choice," the company said in a statement to the Times. "Over the coming days, the company will prepare its bankruptcy filing with the goal of achieving maximum value in court."