The effort by a group of investors to buy the Weinstein Co., founded by the disgraced Hollywood mogul Harvey Weinstein, has ended.
The collapse of the deal was confirmed in a statement issued Tuesday by Maria Contreras-Sweet, a former Obama administration official.
"All of us have worked in earnest on the transaction to purchase the assets of The Weinstein Company. However, after signing and entering into the confirmatory diligence phase, we have received disappointing information about the viability of completing this transaction.
"As a result, we have decided to terminate this transaction."
A source familiar with the deal told NPR that the "disappointing information" was the revelation of another $50 million-plus of debt, in addition to that previously known by the investors. Another source close to the negotiations said it was a combination of the new information and the worry that more debt could be uncovered later that killed the deal.
Contreras-Sweet had headed the Small Business Administration under President Barack Obama. She led a group of investors backed by billionaire Ron Burkle.
As the Two-Way reported, the investor group had hoped to salvage the New York-based Weinstein Co. after it announced in late February that it would file for bankruptcy in the wake of a storm of allegations of sexual misconduct, including rape, against Harvey Weinstein.