Weinstein Co. Agrees to Deal With Unsecured Creditors, Setting Up Sale to Lantern Capital
The Weinstein Co. has agreed to a final price with its unsecured creditors, allowing Lantern Capital ― which has been pursuing the beleaguered company for months ― to close the deal.
The agreement was announced Friday ahead of a hearing with both companies next week in Delaware bankruptcy court. The companies agreed to a final sale price of $289 million after the Weinstein Co.’s unsecured creditors objected to the company lowering its price from $310 million to $287 million. The agreement will also see certain financial advisers at Weinstein Co. waive $1 million in fees relating to the transaction, according to the Hollywood Reporter.
The final sale date has been set for July 11 at 10 a.m. E.T., Deadline reports.
“Today’s resolution not only avoids the expense and risk of litigation, but also ensures all creditors certainty that the sale will close,” Robert Del Genio, Weinstein Co.’s chief restructuring officer, said in a statement. “We are delighted that today’s agreement clears the path for this sale to close. Lantern represents the highest and best value to creditors after the competitive bidding process. We thank Lantern and the [unsecured creditors committee] for their constructive approach to achieving deal certainty.”
The deal brings an end to a period of disagreement between the two entities with the deadline to close the sale looming later this month. Lantern put in a stalking horse bid for the Weinstein Co. in March, when the company declared bankruptcy in the wake of the Harvey Weinstein scandal that rocked the industry.
In a statement, Lantern co-presidents Andy Mitchell and Milos Brajovic said: “This collective resolution affirms our commitment to closing the transaction. This significant milestone is a very productive and positive step, and we are grateful to be part of the solution.”
“Lantern has been steadfast in its dedication to consummate this sale as a going concern, with our employees and assets as the core of its business and with Lantern’s commitment to diversity and respect for all,” the Weinstein Co.’s board of representatives said in a statement. “We wish Lantern all the best as they embark on the exciting challenge of revitalizing these valuable assets.”