Wednesday, 7 March 2018

Weinstein Company rescue deal collapses

 A deal to rescue The Weinstein Company from bankruptcy has collapsed at the last minute.

Businesswoman Maria Contreras-Sweet had led a team that was poised to buy the struggling film production and distribution company.

However, the deal was reportedly terminated after it was found the firm's debt was $280m (£201.4m) rather than the $225m previously disclosed.

The company was co-founded by disgraced US movie mogul Harvey Weinstein.

Mr Weinstein is facing dozens of allegations of sexual abuse, including rape, but he denies non-consensual sex.

Last week, it was revealed the investor group led by Ms Contreras-Sweet - who led the US Small Business Administration under President Barack Obama - was set to pay $500m for the company's assets.

That figure included a $90m victims' compensation fund.

"After signing and entering into the confirmatory diligence phase, we have received disappointing information about the viability of completing this transaction," said Ms Contreras-Sweet.



Source: bbc

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